SECTORS OF THE ECONOMY MM.

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Question I
Mark the most suitable option. (0.5x10=5)
(A) If both assertion and reasons are true, and the reason is the correct
explanation of assertion.
(b) If both assertion and reasons are true, but the reason is not the correct
explanation of assertion.
(c) If Assertion is true, but the reason is false
(d) II Both assertion and reason are false
1. Assertion: In India, over the forty years between 1973-74 and 2013-14, while
production in all the three sectors has increased, it has increased the most in
the tertiary sector.
Reason: Tertiary sector is the only organized sector in the economy so the
government spends a lot of money on creating jobs in the tertiary sector.
2. Assertion: Reliance industry is a privately-owned firm.
Reason: Government is a major stakeholder in the Reliance industries
3. Assertion: The development of agriculture and industry leads to the
development of the service sector.
Reason: As the primary and secondary sectors develop, the demand for
transport, storage structures, banks, insurance, etc., increases.
4. Assertion: An individual who manufactures flour from wheat is engaged in
the primary sector.
Reason: When some process of manufacturing is used to produce the
product is a part of the tertiary sector.
5. Assertion: GDP shows how big an economy is.
Reason: GDP is the value of all goods and services produced within the
domestic territory of a country in a year.
6. Assertion: Rakesh is an educated and skilled worker who earns a high
monthly salary as he is employed in a private bank in a city.
Reason: All service sectors in India are growing extremely well and each
individual engaged in any kind of tertiary activity earns a high income.
7. Assertion: Leela works five days a week, receives her income on the last day
of each month and gets medical facilities from her firm.
Reason: Leela is working in the organized sector
8. Assertion: Mohan is a shopkeeper who pays his taxes on time. He has
employed two workers Rakesh and Raghu in his shop. He pays them well,
however, none of the workers get any paid leaves during the year
Reason: Rakesh and Raghu are employed in the unorganized sector.
9. Assertion: When calculating the total value of goods and services produced in
a country, the value of all goods and services at each stage of production should
be calculated.
Reason: At each stage of production some value is added to a good or service,
therefore, the value added at each stage of production is added to derive the
total value of
goods and services in an economy.
10. Assertion: There are several goods and services that society needs;
however, the private sector does not produce all of them.
Reason: Private sector is profit driven.

II. Multiple choice questions(0.5x10=5)

1. A situation in which more persons are employed on a job than are

optimally required is:
(a) Structural unemployment
(b) Disguised unemployment
(c) Cyclical unemployment
(d) Seasonal unemployment
2. Out of 200 million children in the school-going age group, how many are
attending school?
(a) One-fourth
(b) Half
(c) Two-thirds
(d) One-fifth
3. Central government in India made a law, implementing the Right to Work
in how many districts of India?
(a) 150 districts
(b) 200 districts
(c) 250 districts
(d) 625 districts
4. GDP stands for Gross Domestic Product. What does it show? Pick up the
correct statement given below:
(a) It shows how big is the economy of a country in a given year in terms of its total
output.
(b) It shows the total product of a country in a given year without counting the
country’s total resources.
(c) It shows the number of people involved in production in a particular year.
(d) It shows the total value of trade transactions of a country in a particular year.
5. Employment figures of a country are based on data collected from a 5-
yearly survey on employment and unemployment. Which organization
conducts this survey?
(a) NSSO—National Sample Survey Organisation
(b) NREGA 2005—National Rural Employment Guarantee Act, 2005
(c) ILO — International Labour Organisation
(d) Census of India
6. Identify the natural product from the list of items given below:
(a) Textile
(b) Wheat flour
(c) Cotton
(d) Tomato sauce
7. Which of the following examples does not fall under the unorganized
sector?
(a) A farmer irrigating his field.
(b) A daily wage labourer working for a contractor.
(c) A doctor in a hospital treating a patient.
(d) A handloom weaver working on a loom in her house.
8. Identify the correct answer from the alternatives provided.
Both TISCO and Reliance Industries are owned by :
(a) The government
(b) Private Company
(c) A cooperative society
(d) Jointly by private companies and the govt.
9. NREGA (National Rural Employment Guarantee Act of 2005) has
guaranteed ………. days of employment in a year in many districts of India.
What is the correct number of days?
(a) 200 days
(b) 100 days
(c) 30 days
(d) 60 days
10. Choose one correct statement from the following:
Underemployment occurs —
(a) when people are not willing to work.
(b) when people are working slowly.
(c) when people are working less than what they are capable of doing.
(d) when people are not paid for their jobs.
III. ANSWER THE FOLLOWING IN VERY SHORT (1x3=3)

1. The service sector in India employs two different kinds of people. Who are
these?
2. Why should we be worried about underemployment?
3. Define open unemployment?

IV. ANSWER THE FOLLOWING IN SHORT (3X4=12)

1. What do you understand by underemployment? Why is it called disguised

unemployment? Explain with an example each from urban and rural areas.
2. Do you think the classification of economic activities into primary,
Secondary, and tertiary are useful? Explain how.
3. What is the importance of Mahatma Gandhi National Rural Employment
Guarantee Act 2005?
4. Give examples of public sector activities and explain why the Government
has taken them up
III ANSWER THE FOLLOWING IN DETAIL: (5X2=10)
1. How are activities in an economy classified based on employment
conditions?
2.“Tertiary sector is not playing any significant role in the development of the
Indian economy.” Do you agree? Give reasons in support of your answer.
.