Extra Questions for Class 10 Economics Ch 2 Sectors of the Indian Economy

 Important Questions for Class 10 Economics Ch 2 Sectors of the Indian Economy (S.St)

Fill in the blanks

1. Occupational structure of India is divided into.............. sector. (two/three)
Answer: three

2. Manufacturing comes in the sector...................... (primary/secondary)
Answer: secondary

3. The main motive of public sector is ......................... (profit/public welfare)
Answer: public welfare

4. .................. was the largest producing sector in 1973. (Primary sector/Secondary sector)
Answer: primary sector

5. .................. is the largest producing sector in 2003. (Seconary sector/tertiary sector)
Answer: Tertiary sector

6. Cloth is a ................. product.  (natural/manufactured)
Answer: manufactured

7. Cotton is a ................ product. (natural/manufactured)
Answer: natural

8. Over the period of 40 years, the share of ........... sector in India has increased the most. (primary/tertiary)
Answer: tertiary

9. The objective of activities of private sector is ............ . (social welfare/personal profit)
Answer : personal profit

Choose the 'True' or 'False'

1. The primary sector continues to be the largest employer in the last thirty years. (True/False)
Answer: True

2. The GDP of India in 2003 was Rs. 30,000 crore. (True/False)
Answer: False

3. Workers in the organised sector enjoy security of employmet. (True/False)
Answer: True

4. Rickshaw-puller is a formal worker. (True/False)
Answer: False

5. Agriculture is the another name of service sector. (True/False)
Answer: False

6. The main motive of public sector is public welfare. (True/False)
Answer: True

7. Is the disguised unemployment called as fractional unemployment ? (Yes/No)
Answer: No

8. Policeman is a ................... worker. (formal/informal)
Answer: formal

9. Primary, secondary and tertiary sector activites are .................. (independent/mutually independent)
Answer: mutually independent

Very Short Answer Type Questions

1. What is an economic activity ?
Answer:
An activity which generates income to a person is called economic activity.

2. What is an economy ?
Answer:
An economy is the sum total of all economic activities of the people, society or country.

3. What are primary activities of an economy ?
Answer:
Primary activities of an economy are those activities which are associated directly with land and water e.g. farming, huntingm fishing etc.

4. What are secondary activites ?
Answer:
Secondary activities are those activites in which primary goods are used to produce some other commodity.

5. What are tertiary activities ?
Answer:
All those activities which link the producers and consumers are called tertiary activities.

6. What is Gross Domestic Production ?
Answer:
It is the value of all final goods and services produced within country during a particular year.

7. What is organised sector ?
Answer:
Organised sector is that sector where the terms of employment are regular and therefore people have assured work. Workers in the organised sector enjoy security of employment.

8. What is unorganised sector ?
Answer:
The unorganised sector is characterised by small and scattered units which are largely outside the control of the government.

9. What is private sector ?
Answer:
The private sector is owned and controlled by individuals or a group of individuals with the objective of profit-making. For example, Hindustan Lever Limited, Bajaj, wholesale shops, etc.

10. Define public sector.
Answer:
Public sector is controlled and owned by the government with the aim of social welfare in general. Indian Railways, Indian Oil Corporation and Delhi Transport Corporation are examples of public sector.

11. Define primary sector and secondary sector with example.
Answer:
Primary sector - When a good is produced by exploiting natural resources. It is known as activity of primary sector. This sector is also known as agricultural sector. For example Agriculture, Dairy etc.
Secondary Sector - The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. For example Manufacturing and Mining.

Short Answer Type Questions

1. Give the meaning of tertiary sector. State any three factors that have contributed to the growth of this sector.
Answer:
That sector which generates services such as banking, communication, trade and transport etc. rather than goods is called tertiary sector or service sector. Following are the three factors that have contributed to the growth of this sector :
  1. In any country several services such as hospitals, educational institutions, post and telegraph, banks etc. are required which contributed to the growth of this sector.
  2. The development of agriculture and industry leads to the development of services such as transport, trade, storage etc.
  3. As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, etc.
2. Why has tertiary sector become the largest producer in India over the last 30 years ? Explain four reasons.
Answer:
Tertiary sector has become the largest producer in India over the last 30 years. It can be explained with the help of following reasons :
  • Expansion of Basic Services - Tertiary sector has become the largest producer in India due to the expansion of basic services such as hospitals, educational institutions, post and telegraph services, banks etc.
  • Development of Agriculture and Industry - This leads to the development of tertiary services such as transport, trade, storage etc.
  • Increase in Income - Rise in income increases the demand for more services like eating out, tourism, shopping, private hospitals, private schools, etc.
  • Development of Information and Communication Technology - Tertiary sector has become the largest producer in India over the past decade due to the revolution in information and communication technology.
3. State the most common type of unemployment in India.
Answer:
The most common type of unemployment in India is disguised unemployment in rural areas and open unemployment in the urban areas. It is noticed when some of the disguised unemployment persons move from rural to urban where they become openly unemployed.

4. Explain any two employment generation programmes undertaken by the government.
Answer:
These are the following :
  • Rural Works Programme - This programme aims at construction of civil works of permanent nature in rural areas.
  • Integrated Dry Land Agricultural Development - Under this programme permanent works like soil conservation, development of land and water harvesting are undertaken.
5. Explain disguised and technical unemployment. Give one example of each.
Answer:
Disguised unemployment - It is a situation in which more people are engaged in an activity than the required ones. For example, for weeding one acre of wheat or paddy field, only 4 persons are required, but if 6 workers come and do the same work, the additional 2 persons are considered as disguised unemployment.
Technical unemployment - If unemployment occurs owing to changes in technology, it is referred to as technical unemployment. For example, when computer reduces the need for labourers drastically in an economy, that means labourers are technically unemployed.

6. Write a note on National Rural Employment Gyarantee Scheme (NREGS).
Answer:
The launching of the National Rural Employment Guarantee Scheme (NREGS) - February 2, 2006 to provide enhanced livelihood security for the poor in rural areas by providing at least 100 days of guarantedeed wage employment in every financial year to every household whose adult members volunter to do unskilled manual work constituted a major milestone in the social sector.

7. Is the service sector actually growing ? Substantiate your answer.
Answer:
Service sector growth continued to be broad-based. Among the three subsectors of services, trade, hotels, transport and communication services continued to lead by growing at double -digit rates. Impressive progress in expanding railway passenger network and production of commercial vehicles and fast addition to existing stock of telephone connections, particularly mobiles played key roles in such growth. Growth in banking, insurance and real estate services maintained the momentum with progressive maturing of Indian financial markets and the on going construction. However, community, social and personal services, reflecting the process of fiscal consolidation and increasing efficiency of fiscal expenditure management.

8. Compare the rate of growth of tertiary sector with other sectors in terms of GDP and employment.
Answer:
A remarkable fact about India is that while there has been a change in the share of three sectors in GDP, a similar shift has not taken place in employment. More than half of the workers in the country are working in the primary sector, mainly in agriculture producing only a quarter of the GDP. In contrast to this, the secondary and tertiary sectors produce three fourth of the produce whereas they employ less than half of the people. In addition, production in the service sector rose by 11 times, employment in the service sector rose less than three times.

9. In India, the development process has led to an increase in the share of tertiary sector in GDP. Do you agree with this statement ? Elaborate.
Answer:
The GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector and the services sector. The contribution made by each of these sectors makes up the structural composition of the economy. In India, at higher levels of development the service sector contributes more to the GDP than other two sectors.
In 2003 the share of the service sector was 52.9% more than that of agriculture or industry. This phenomenon of growing share of the service sector was accelerated in the post 1991 period.

10. Explain measures that can be adopted to remove disguised unemployment in the agriculture sector.
Answer:
The following measures can be adopted to remove disguised unemployment :
  • Emphasis should be on vocationalisation of education.
  • Emphasis should be on training of rural youth for self -employment.
  • Mobility of labour should be increased.
  • Employment exchanges should be opened in the rural areas to inform the villagers about the employment opportunities in urban areas.
  • Emphasis on small scale and cottage industries.
11. State measures that you feel will help to protect the labourers in the unorganised sector.
Answer:
There is a need for protection and support of the labourers in the unorganised sector - specially in rural areas. The unorganized sector mostly comprises landless agricultural labourers. Nearly 80% of rural households in India are in small and marginal farmer category. These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage, facilities and marketing outlets. In urban areas, small scale industry also need government's support for producing raw material and marketing of output. The casual labourers in both rural and urban areas need to be protected.

12. Should the workers in the unorganised sector be protected ? Give reasons.
Answer:
Yes, the workers in the unorganised sector should be protected. Because of the unorganised sector, workers land up in low-paid-jobs. They are often exploited and not paid a fair wage. Their earnings are low and not regular. Hence, there is a need for protection and support of the workers in the unorganised sector. Government should play a major role.

13. 'Workers in the unorganised sector also face social discrimination'. Do you agree ? Give reasons.
Answer:
Yes, workers in the unorganised sector also face social discrimination. We often find that majority of workers from scheduled castes, tribes, and backward communities find themselves in the unorganised sector. These workers are forced to take up jobs in the unorganised sector with low earnings.

14. Explain two ways by which more employment can be created in a country like India.
Answer:
The most important programmes undertaken by the government for employment generation in India are as follows :
  • Rural Works Programme - This programme aims at construction of civil works of permanent nature in rural areas.
  • Integrated Dry Land Agricultural Development - Permanent works like soil conservation, development of land and water harvesting are undertaken under this programme.
  • National Rural Employment Guarantee Act 2005 - This programme would continue in future.
15. Write any three points of difference between organised sector and unorganised sector.
Answer:
Economics Ch 2 Sectors of the Indian Economy

16. Explain briefly the Primary, Secondary and Tertiary Sectors of Indian Economy.
Answer:
  • Primary Sector - When a good is produced by exploiting natural resources, it is known as activity of primary sector. This sector is also known as agriculture and related sector.
  • Secondary sector - When natural products are changed into other forms by ways of manufacturing it is known as economic activity of secondary sector.  It is also known as industrial sector.
  • Tertiary sector -  These activities which generate services rather than goods is called the activities of  tertiary sector. It is also known as service sector.
17. Explain clearly the meaning of disguised unemployment.
Answer:
It is the situation in which more people are engaged in an activity than the required ones. For example, for weeding one acre of wheat or paddy field, only 4 persons are required, but if 6 workers come and do the same work, the additional 2 persons are considered as disguised unemployment.

18. What is formal credit ?
Answer:
Formal credit included loans from banks and co-operatives. These includes banks and co-operative socities loans. Formal sector charges low rate of interest. The Reserve Bank of India supervises the functioning of formal source of loan. At present, it is the richer households who receive formal credit whereas the poor have to depend on the informal sources.

Long Answer Type Questions

1. Why the Tertiary sector has become the largest producer of India from the last 30 years ? Explain the four causes responsible for it.
Answer:
The tertiary sector has become the largest producer in India. It can be explained with the help of following reasons.
First, tertiary sector has become the largest producer in India due to the expansion of basic services such as hospitals, educational institutions, post and telegraph services, bank, etc.
Second, the development of agriculture and industry leads to the development of services such as transport, trade, storage, etc.
Third, rise in income increase the demand for more services like eating out, tourism, shopping, private hospitals, private schools, etc.
Fourth, tertiary sector has become the largest producer in India over the past decade due to the revolution in information and communication technology.

2. Explain the Tertiary Sector. Examine three factors responsible for the development of this sector.
Answer:
Tertiary sector is that sector which includes such activities that generate services. It is also known as service sector.
Factors responsible for the development of this sector the following are the factors.
  1. The development of agriculture and industry have contributed the growth of this sector.
  2. The government is increasingly providing services such as education, hospitals, transport etc. Which have contributed the development of this sector.
  3. Emergence of newer and newer services has also contributed to the growth of this sector. Income levels rise certain sections of people start demanding many more services like eatingout, tourism, shopping, private school etc. which have contributed to the development of this sector.
3. How will you explain the interdependence of primary, secondary and tertiary sectors of Indian Economy with examples ?
Answer:
Primary, secondary and tertiary sectors of Indian economy have equal importance. These sectors are inter-related with each other. Without one sector other sector has no importance. Production of natural products is manufactured in secondary sector and traded or transported to the final consumers by tertiary sector.
For example, Goods that are produced in the primary or secondary sectors would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times, it may be necessary to store these in godowns. We also may need to talk to others over telephone or send letters to borrow money from banks to help production and trade.

4. What do you mean by service sector ? Discuss the importance of this sector in Indian Economy.
Answer:
Tertiary/service sector - Those activities which generate services rather than goods is called the activities of tertiary sector. It is also known as service sector. 
  • In India, several services such as hospitals, educational institutions, post and telegraph services, police stations, court, village administrative offices, municiple corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services. In a developing country the government has to take responsibility for the provision of these services.
  • India is a Agricultural country, the development of agriculture and industry leads to the development of services such as transport, trade, storage and the ce, as we have already seen. Greater the development these services more would be the development of primary and secondary sectors.
  • As income level rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
5. Mention two measures to reduce the problem of unemployment in India.
Answer:
Two measures to reduce the problem of unemployment in India are as follows :
  1. Development of Rural Areas - This will help in reducing unemployment in rural areas, where the bulk of unemployment is found. Use of labour intensive techniques in industries is an option that has so far been considered in small scale and rural industries. Local construction projects such as small and medium irrigation and drainage works, the construction of storage facilities, roads, etc. should be taken up. Labour intensive methods of cultivation, expansion of animal husbandary, development of cottage and small industries, agro-processing and manufacturing units based on agricultural products can be useful.
  2. Training for Productive Work - Problem of unemployment can be reduced by training for productive work. This will increase the marketable skills and flexibility to learn new things and innovation.
6. What is the role of government in National Development ?
Answer:
There is a large number of activities which are the primary responsibility of the government. The government must spend on these. Providing health and education facilities for all is one example. Running proper schools and providing quality education, particularly elementary education is the duty of the government. Government also needs to pay attention to aspects of human development such as availability of safe drinking water, housing facilities for the poor and food and nutrition. It is also the duty of the government to take care of the poorest and most ignored regions of the country through increased spending in such areas.
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