GRADE X

SESSION-2020-2021
SOCIAL SCIENCE: ECONOMICS

CHAPTER 2: SECTORS OF THE INDIAN ECONOMY

Q1.Define the various sectors for classifying the economic activities.

Ans. The various sectors for classifying the economic activities are:
1. Primary Sector:-It also known as the agriculture sector and it is used for producing natural goods.
2. Secondary sector:-It is also known as the industrial sector and it produces manufactured products.
3. Tertiary sector: - It is also known as the service sector and it helps to develop the other sectors.

Q2.How do we calculate the total production in each sector?

Ans. While calculating the total production of each sector, we consider the following:-
1. The number of goods and services is not considered.
2. Rather, the values of goods and services is used.
3. Only the final value of goods and services are calculated.

Q3.Why are only ‘final goods and services’ counted?

Ans. We calculate on the final goods and services because the value of final goods already includes the
value of all the intermediate goods that are used in making the final good.

Example: The value of Rs60 for the biscuits (final good) already includes the value of flour (Rs10). 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.

Q4.What are intermediate goods?

Ans. Intermediate goods are the goods that are used for final production of goods and services. E.g. Cotton
is an intermediate good for manufacturing a soft toy.

Q5.What is GDP? Give its key features.

Ans. GDP is the value of all the final goods and services produced within a country during a particular year.

Following are some of its key features:

1. It is the sum of production in the three sectors.
2. GDP shows how big the economy is.
3. Measuring GDP is undertaken by a central government ministry.

Q6.What does the history of developed countries indicate about the shifts that have taken place between the
sectors?
Or
Briefly discuss historical changes in the sectors.
Ans. The following points indicate the historical changes in the various sectors:
A. Primary Sector
(1) It is the stage where the goods produced were natural products and most people were
employed in this sector.
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 (2) As the method of farming changed and the agricultural sector began to prosper production
increased.
(3) Many people could now take up other activities.
B. Secondary Sector
i) Due to new methods of manufacturing were introduced, factories came up and started expanding.
ii) Farmers began to work in factories.
iii) This sector slowly became the most important sector in the total production and employment.

C. Tertiary Sector
1. In the past 100 years there has been another shift from secondary to tertiary sector in the developed
countries.
2. The services have become the most important in terms of total production.
3. Most of the working people are also employed in the service sector. These trends are usually
observed in the developed countries.

Q7.What changes have taken place in terms of production and employment in the various sectors in India?
Ans. The following changes have taken place in terms of production and employment in the various sectors
in India
1. The primary sector continues to be the largest employer even now.
2. 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.
3. In contrast to this, the secondary and tertiary sectors produce four-fifths of the produce whereas they
employ less than half the people
4. Even though industrial output or the production of goods went up by more than nine times during the
period, employment in the industry went up by around three times.
5. The same applies to the tertiary sector as well. While production in the service sector rose by 14
times, employment in the service sector rose around five times.

Note: This is because not enough jobs were created in the secondary and tertiary sectors.

Q8 Explain underemployment of the primary sector in India.

Ans. Workers in the agricultural sector are underemployed as:-
1. Even if you move a few people out, production will not be affected.
2. This is the situation of underemployment, where people are apparently working but all of them are
made to work less than their potential.
3. This kind of underemployment is hidden in contrast to someone who does not have a job and is
clearly visible as unemployed.
4. It is also called disguised unemployment.

Q9 How to create more employment?

Ans. The following are some of the ways through which employment can be increased in the various
sectors:-
1. Increase in government spending on banks for providing cheap loans to the farmers as well irrigation
of land.
2. Construction of new dams or canals.
3. Investment in transportation, storage of crops, construction of roads etc.
4. Local banks can give credit at responsible rate of interest.
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 5. Construction of a dal mill to produce, process and sell in the cities.
6. Opening of a cold storage for the farmers to store potatoes, honey and sell when the price is good.
7. Investment in health and education sector.
8. Promoting activities like tourism, regional craft industry, or new services like IT.
9. Short term measures like creation and promotion of more important laws like MGNREGA.

Q10 Explain the key features of MGNREGA.

Ans. The following are the key features of MGNREGA:
1. It stands for Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005).
2. It is a law made by the central government.
3. It gives Right to Work in about 625 districts of India.
4. Under MGNREGA 2005, all those who are able to, and are in need of, work in rural areas are
guaranteed 100 days of employment in a year by the government.
5. If the government fails in its duty to provide employment, it will give unemployment allowances to
the people.
6. The types of work that would in future help to increase the production from land will be given
preference under the Act.

Q11 Differentiate between organized and unorganized sectors.

Ans.
S.NO ORGANISED SECTOR UNORGANISED SECTOR
1 Terms of employment-regular and Terms of employment- not
assured work. regular no assurance of work.
2 Registered by the government and Not registered by the
follow laws like the Minimum government and the rules and
Wage Act. regulations are not followed.
3 Has formal processes and No formal processes and
procedures. procedures followed.
4 Security of employment. No job security.
5 Fixed working hour; overtime paid. Working hours not defined and
no overtime paid.
6 Benefits like paid leaves holidays There is no provision for
PF, pension etc. overtime, paid leave, holidays,
leave due to sickness etc.
7. Example:- Teachers, doctors, E.g. Casual workers, daily wage
professors etc. labourers etc.

Q12 Who are the vulnerable groups in the unorganised sector?

Ans. The vulnerable groups in the unorganised sector are:
1. Rural Areas: Landless agricultural labourers, small farmers, artisans such as weavers, blacksmiths,
carpenters and goldsmiths etc.
2. Urban areas: Small-scale industry, casual workers in construction, trade and transport etc., and those
who work as street vendors, head load workers, garment makers, rag pickers etc.
3. Groups based on social discrimination: Majority of workers from scheduled castes, tribes and
backward communities find themselves in the unorganised sector.

Q13 What are the ways through which the vulnerable groups be protected?
Ans. The vulnerable groups can be protected through the following ways/policies:-
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 1. These farmers need to be supported through adequate facility for timely delivery of seeds,
agricultural inputs, credit, storage facilities and marketing outlets.
2. Small-scale industry also needs government’s support for procuring raw material and marketing of
output.
3. Removing social discrimination can surely help the socially backward groups to improve their
condition.

Q14 Differentiate between private sector and public sector.

CRIETRIA PRIVATE SECTOR PUBLIC SECTOR
OWNERSHIP Owned and controlled by Part of the country’s economy where
private individuals and the control and maintenance are in the
organisations. hands of the government.
PURPOSE AND Activities are mainly guided Activities are done with the purpose of
AIM by the motive to earn profit. welfare of the people.
FINANCE Raised by the owner through The finances are arranged from taxes
personal funds, shareholders or collected from individuals and
financial institutions. businesses.
EXAMPLES TISCO, Reliance etc. Railways, post offices etc.

Q15 Why some things which are needed by the society as a whole not provided by the private sector?
Ans. Common services that are required by the society are construction of roads, bridges, railways,
harbours, generating electricity, providing irrigation through dams etc.

Reasons why they are not provided by the private sector:

1) Large sum of money required for providing these common services.
2) There is difficulty in collection of money from the people for such services.
3) Even if the private sector is able to provide these services, these services are provided at a high price.

Q16 List the various activities that have to be provided by the government.
Ans. The following are some of the activities that have to be provided by the government:-
1) Provision of affordable electricity by the government.
2) Buying wheat and rice from farmers at a ‘fair price’.
3) Providing health and education facilities for all.
4) Provision of safe drinking water, housing facilities for the poor and food and nutrition.
5) 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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WHY SOME THINGS WHICH ARE NEEDED BY THE SOCIETY AS A WHOLE NOT PROVIDED
BY THE PRIVATE SECTOr

• Some require large sum of money which is beyond the capacity of the
private sector.
• Also, collecting money from thousands of people who use these facilities
is not easy.
• Even if they do provide these things they would charge a high rate for their
use.
• Examples are construction of roads, bridges, railways, harbours,
generating electricity, providing irrigation through dams etc.
Thus, governments have to undertake such heavy spending and ensure that
these facilities are available for everyone.