Sectors of the
Indian Economy
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (! mark each)
,~,: Objective Section
Q. 1. Choose the incorrect option from the following:
List I
(a)Courier
(b) Fisherman
(c) Carpenter
(d) Banker
Ans. (c)
,,;,';; Very Short Answer Type Questions - - - - - - - - 11 mark each)
Q. 1. Suggest any one way to create
employment in semi-rural areas.
ICBSE Delhi, Set 1, 2020)
Ans. One important ways to create employ-
ment in semi-rural areas is given below:
(i) By starting cottage industries and
small processing units.
(ii) By providing basic inputs-the gov-
ernment can increase the productivity.
Q. 2. How is GDP calculated?
[CBSE Delhi, Set 1, 2020)
Ans. GDP: The value of final goods and
services produced in each sector during
a particular year provides the total
production of the sector for that year.
Q. 3. How is Public sector different from
Private sector? (CBSE Delhi, Set 1, 2020]
Ans. Public Sector is different from Private
Sector:
ln the public sector, government owns
most of the assets and provides all the
services, whereas in p rivate sector,
ownership of assets and delivery of
services is in the hands of private
individuals or companies.
Q. 4. Distinguish between 'Primary' and
'Secondary' Se~~~SE Delhi, Set 1, 20191
Ans. Primary Sector: It covers those activities
that involve production of goods directly
using natural resources, e.g. Agriculture.
(CBSE OD, Set 1, 2020]
List II
(1) Tertiary Sector
(2) Primary Sector
(3) Primary Sector
(4) Tertiary Sector
Secondary Sector: It covers those
activities in which natural products
are changed into other forms through
manufacturing. This is the next step after
primary activity, e.g. Industries. -
Q. s. Distinguish between 'Secondary' and
'Tertiary' Sector.
Ans. Secondary Sector: It covers those
activities in which natural products
are changed into other forms through
manufacturing, e.g. Industries.
Tertiary Sector: It covers those activities
that help in the development of primary
and secondary sectors, e.g. Transport,
banking, etc.
6 When we produce goods by exploiting
Q. ·
natural resources, in which category of
economic sector such activities come?
[CBSE, 2018]
Ans. When we produce goods by exploiting
natural resources, it comes under the cat-
egory of 'Primary sector'.
Q. 7. Which sector helps in the development
of the primary and secondary sectors?
ICBSE, Term 1, 2016]
Ans. Tertiary sector helps in the development
of the primary and secondary sector.
Q. 8. Define secondary sector.
(CBSE, Term 1, 2016]
Ans. The sector in which people are engaged
in the activi ties where natural products
are changed into other manufacturing
 products with the help of industrial ac-
tivities, is termed as secondary sector.
Q. 9. Suggest any one way to create
employment opportunity in the rural
(CBSE, Term 1, 2015]
Ans. O pening of cold storage in rural areas
creates employment opportunity as they
'"'" Short Answer Type Questions-II - - - - - - - - - 1 3 marks each)
Q. 1. Why is the tertiary sector becoming
more important in India? Explain.
[CBSE OD, Set 1, 2020]
ICBSE Delhi, Set 1, 2019]
Ans. The tertiary sector becoming more im-
portant in India because of following rea-
sons:
(i) In any country several services
such as hospitals, educa tional
institutions, banks, trans portation
etc. are considered to be the basic
services fo r any d eveloping country
for example India.
(i.i) As income rises, certain sections
of people starts demanding more
services like tourism, shopping,
hospitals, schools etc. Thi s helps in
increasing the C DP of the country.
(iii) O ver the past d ecade or so, certa in
new se rvices su ch as those based
on Inform ation and communica tion
technology have become essential
in India. Thus, the tertiary sector
becomes very imp ortant.
Q . 2. Whyisorganisedsectorpreferredbythe
employees ? Explain.
(CBSE OD, Set 1, 2020)
Ans. The organised sector preferred by the
employees because of following reason:
(i) It will provide job security for
all employees and even a certain
amount of money is kept apart from
the salary every year to pay the
lump-sum amount to the employees
after retirement.
(ii) It covers those enterprises or
places of work where the terms
of employment are regular and
therefore, people have assured work.
can store their products in it.
Q. 10. In which sector does government own
most of the assets and provides the basic
services? (CBSE, Term 1, 2015]
Ans. In service sector or public sector or ter•
tiary sector, the government own most of
the assets and provides the basic services.
(iii) They are registered by the
government and have to follow its
rules and regulations which are
gi ven in va rious laws such as the
Factories Act, the Minimum Wages
Act, the Payment of Gratuity Act,
Shops and Establishment Act, etc.
Q. 3. ''Tertiary sector activities help in
the development of the primary and
secondary sectors." Evaluate the
statement. ICBSE Delhi, Set 1, 2020I
Ans. "Tertiary sector activities help in the de-
velopment of the primary and seconda ry
sectors" beca use of following reasons:
(i) Tertiary sector activities, by
themselves, do not produce any good
but they are an aid or support for
the primary and secondary sectors
prod uction process. Fo r exa mple,
the transport, trade, storage, etc.
helps the primary, sector industries
like agriculture.
(i.i) Tertiary sector comprises of several
essential services such as hospitals,
educational institutions, post and
telegraph services, police stations,
courts, defence, trans port, banks,
etc. All these are required as a basic
service that helps the primary and
secondary sectors.
(iii) Over the past decade or so, certain
new services such as those based
on info rm ation and communi cation
technology have become important
and essential.
Q. 4. "Primary sector' was the most important
sector of economic activity at initial
stages of development." Evaluate the
statement. (CBSE Delhi, Set 1, 2020)
Ans. ''Prima ry sector was the most important
sector of economic activity at initial stag-
es of development" because of:
(i) The history of developed countries
ind icates that in the initial stage of
development, the primary sector
was the most important sector of
econo mic activi ties. As the methods
of fa rming changed and ag ri culture
sector began to prosper, it started
producing much more food than be-
fore and most people were also em-
ployed in this sector.
(ii) Primary sector is still the largest e<:o-
nomic sector and plays a signi fica nt
role in the overall socio-economic
development of the country.
(i ii) The well being of the seconda ry
sector depend on the on the prima ry
sector. This sector generally takes
the outpu t of primary sector as raw
material to manufacture fini shed
goods. Flou rishing primary sector
help in the development of strong
secondary and tertiary sectors. All
of these sectors arc required fo r the
development of the country.
Q. 6. Distinguish the service conditions of organised sector with that of u norgan ised sector.
ffll Topper's Answ ers
'• -
. ,
d
.
- ...
Q. 5. How do we count various goods and
services fo r calculating Gross Domestic
Product (GDP) of a country ? Exp lain
with example. [CBSE Delhi, Set 1, 2019I
Ans. Gross Domestic Product (GDP) is the
market value of the fina l good s and
services produced during a year w ithin
the domestic territory of a country . While
calculating GDP, final goods and services
are counted to avoid the problem of
d ouble counting.
For e.g. a farmer sold wheat to a flour
m ill for f IO per kg. The mill grinds the
wheat and sold the fl our toa biscuit com-
pany for f 12 per kg. The b iscuit com-
pany u ses the flour, su gar and butter to
t
make 5 biscuit packets. It sells the biscuit
to the cons umer at, 15 per biscuit pack-
et. Here biscuits are the final goods that
are purchased by the cons umer. Wheat
and wheat fl our are the intermediate
goods used in the production of fina l
good . The valu e oH 15 already includes
the value of fl our f 12. Hence, only the
value o f final goods and services are in-
duded in GOP.
[CBSE, 2018]
__
" .
0 ,
.
./
Ans. Organised sector: These sectors are regis-
tered by the government and have to fol -
low its rules and regulations.
Unorganised seclors: Such sectors cover
Units of Organised Sector
1. In organised sectors workers are covered by
security of employment.
2. Workers are expected to work only for a fixed
numbers of hours, if they work more, then
they get overtime payment by the employer.
3. The factories follow government rules such as
Factories Act, Minimum Wages Act, Payment
of Gratuity Act etc.
Q. 7. Explain the problem of underemploy-
ment in the service sector in urban areas
with examples. (CBSE, Tenn 1, 2016)
Ans. There is a problem of underemployment
in the service sector or tertiary sector
in urban areas. There are thousands
of casual workers in the service sector
who search for daily employment. For
example: petty workers, painters, street
vendors, rickshaw pullers, etc., who are
underemployed because they do not
have better work opportunities.
With the example of sugarcane, explain
the interdependence of all the three
sectors of the economy.
(CBSE, Tenn 1, 2015]
Ans. Our economy is divided into three
sectors.
,~-;:: Long Answer Type Questions __________ IS marks each)
Q. 1. Highlight any five reasons for the importance of tertiary sector in India.
ffll Topper's Answers
sma ll and scattered units which are out of
government's control.
Major differences between both such
units are as follows:
Units of Unorganised Sector
These are low paid jobs and often not
regu lar. Employment is not secured.
There are no provisions of overtime, paid
leave, holidays, leave due to sickness, etc.
They do not follow government rules. When
there is less work, due to season or other
reasons some people may be asked to leave
without salary or payment.
(i) Primary sector-Directly dependent
on nature.
(ii) Secondary sector-Conversion of
natural things into useful products.
(iii) Tertiary sector-Service sector.
Sugarcane is a natural product which we
grow naturally, that makes it the part
of primary sector. When it is converted
into sugar o r jaggery, it needs machines
to perform task, like sugar mills that
ultimately makes it a part of secondary
sector and use of transport, banking
service or other service sector to export
sugar to the markets and sugarcane to the
factories becomes a pa rt of tertiary sector.
By this example, we can understand that
most of the time every three sectors work
together to perform va rious task.
(CBSE, 20191
 _ "-') ! I _.ow:.vu- ""-"'-"fP"•nb.,ciliiA Jiu _»,.o «
- . •- .ML 4-°~---"""'- <.o""""-'-"""'-""•'--
- f----- ~ =--- -
---------
- __ .o,) fr- --r= uid-<,( c,.id.___...;u___~P""td- "I- »-t_ -
- ~ - A A G L . J u w . ~ - "-t- " ° " - ~
.,, .. , ,.~__;t~ o.,v,LU!>,~-
-
- - f\"9- luuf':"-:1 M.ti= <MM J,,w.,W. oAl.ut --
~ - r-- ~ ~ IMW,.__ -S.u1.-1.1iUL__,U.k.t ol.oc.1:n..n.A;,.- - -
. -
.,[c.-o.ciwu, --f"A-;- "--"''':fo~ .....,_
.)Ju._ -=..<Lf . --- --

Q. 2. Compare the economic activities of the private sector with that of the public sector.
(CBSE OD, Set 1, 20191,
(CBSE OD, Set 3, 20191
Ans.
S. No. Private Sector Public Sector
1. Ownership of assets and delivery of The government owns most of the assets and
services is in the hands of the private provides all services.
indi viduals or companies.
2. Their main motive is to earn profit. Their main motive is public welfare rather than
toeam profit.
3. Private sector collects money for the The government raises money for various
service they provide. activities through taxes.
 4. Due to the motive of earning profit
it does not invest funds to construct
infrastructures fo r public utility/facility. facility, like construction of roads, bridges, etc.
5. Examples: Tata Iron and Steel Company Examples: Railways, post office, police station,
Ltd. (TISCO), Reliance Industries Ltd.,
etc.
Q. 3. Explain any five differences between organised and unorganised sectors.
Ans. Five differences between organised and unorganised sectors are as follows:
Organised Sectors
(i) Terms of employment arc regular and people
have assured work.
(ii) They are registered under the government.
(iii) They have to follow certain rules and
regulations stated by the law. E.g. Factories
Act.
(iv) It has formal processes and procedures of
operation.
t
(v) There is security of employment. E.g. Fixed
working hours, leaves, etc.
Q. . ;:;~:•:t.•• A pe,son wo,k;ng 9 am-5 pm
4 Explain any five features of the Tertiary
sector. [CBSE, Term 1, 2016]
Ans. Tertiary sectors refers to the service sec-
tor. Main features of tertiary sectors are:
(i) The sector involves activities that
help in the development of the
primary and secondary sector.
(ii) The tertiary sector does not pro-
duce any kind of goods but they
aid and support in the production
process.
(iii) Tertiary sector helps to transport
goods, produced in primary or
secondary sector or arrange for
whole sale and retail sale.
(iv) Helps in the storage of goods in
godowns, provide banking service.
(v) Since these activities generate service
other than goods, it is called service
sector. It also includes teachers,
doctors and other p rofessionals who
are not connected with production
of goods.
Q. 5. State any five features each of public
sector and private sector.
[CBSE, Term 1, 2015I
Due to motives of public welfare, it invests funds
to construct infrastructures for public utility/
etc.
[CBSE OD, Set 2, 2019]
Unorganised Sectors
People have no guarantee of work and ca n
be removed at any time.
It is outside the control of the government.
There are rules and regulations, but are not
strictly followed.
There are no formal processes and
procedures of operation.
There is no secu rity of employment.
For example, A person working in a tea stall.
Ans. Public sector: It is a service sector,
providing service to the people:
(j) It is owned by the government.
(ii) Most of the services provided by the
government itself.
(iii) Motive of this public sector is the wel-
fare of the masses and all the activities
are guided by the interest of nation.
(iv) In this sector employees feel free,
secured disciplined and punctual in
their duties.
(v) Government earns money by differ-
ent taxes etc.
For example: Railways, Postal services,
Banking etc.
Private Sector:
(i) Ownership is in the hands of the pri-
vate individuals or private companies.
(ii) Jobs in this sector is to earn more
money.
(iii) Services are provided in the hands
of individuals.
(iv) Jobs in this sector are less secured.
(v) This sector charges high rates for the
use of services.
Examples are; TISCO, Reliance Industries
etc.
 CHAPTER 4.2

Sector of Indian Economy

primary nm! so.,.,_undury sedurs

ONE MARK QUESTIONS
Ans: fCHSt20 12]
Tert.i/1.1"}' soctor helJ>S in t he <le1·elopment of primary
1 When we prorl11cc goods hy exploiting t he natural
and secondary sectors
or
n...-.;o.nm;t.-s, in which category t.'CoUumic :;t.'Clor imch
acti\·iti es come? (CBSE 2018] 11. Gil·e four re-ms for t he rising of the tertiary sector
Ans : in India.
Ans : [CBSE2012]
When goods are produced by exploiting I he 111\1 urn I
resources, it is an actfrity of the primnry sector. The four re11.'I01L~ for the risiug of the tertiary st'Ct or in
l11di11 11m. provision of lmsic services. rise in income.
1 \Vim ha:1 the ownership of the assets in the pul:.lic <lc1·clopmc11t of pri1u nry tmd SL'l'011d11ry SL'Clurs an<l
SCf'tor? development of !CT.
Ans : [CBSE201&)
The uwucrship of the nsscts in the public st,>clor is
v,ith the government.
3. What does GDP stands for '!
Ans: ICBSE2018)
GDP stand~ for Grosis Domestic Product.
t. ~lc11t io111my one feHture of the unorganised sector.
An!! : [CBSE2014)
U11org11uised S(.'Ctor is uot reg istered with the
go..-erumcul.
5. Where is the disguised employment. fouud moi;t Jy'!
Arn; : fCBSE2014)
THREE MARKS QUESTIONS
T he disguised employment L'! mostly fouu<l in the
agriculture sector.
12. Distingui~h the scrvkc condit ions of organist-d st>ctor
l In 1d1ich soctor arc a large number of workers losing
with thRt of m1org11.11iS1!t"I SCf'tor. [CDSE 201 8]
their juhs sin<.:e 1990?
Ans : ICBSE20U) Explain with suitable exam ples which part of the
In the organised scclor. a large number of workers service sector is not growing in importance.
losing their johli since 1990. Ans : [CBSE2009j
l \\' hat W/15 the lllOSI, important sector of l'COIIOrrli C The scrviet: conditions of the organised and the
act ivities at the earliest stages of development"! 1morg11niSt.,I SL>ctor arc:
Aus : ICBSE2014] Sen ·iee conditions of Orgauist.-d sector:
Primary sector wai; the moi;t important sector l. These arc the big unit!>.
of cconotnic ac:tivitics at t.he earliest stages of 2. These units !\Tc rcgiMtcr1..'I I with the
<le1'Clopment. go1·ernment.
3. There arc some forum! µrue~~ uud
l Name the sector which forms the btt,;C for all other procedures in this soctor. Therefore, ii is
products. [CDSE 2012] called organised.
Ans : 4. There is St.'Cllrity of employment.
Primary SL'Ctor forms the bru;c for all other products h. Scn•icc co11dit ions of unorganised sector:
I. Tli1..-sc nre the ~11111.\111.nd sc11.ttcrc<l units.
I. Nn111e the SL'Ctor in which the natural products arc
2. ThCSll units nre not registered with t he
changed into 01 hcr forms. [CBSE 20 12] go\·enllllCllt.
A ll!! : 3. There are no form a l processes 11.ml proc«lurcs
Primary sector i~ the sector in which the nRt.nral in this soctor. Therefore, it i~ cnlkd
product s arc changed into other forms. Unorganise<l.
4. There is no security of employment.
• N11111e the st'Chir 11'11ic:h help:,; in the Je1·clopme11t of
 13. N111ne 1h1• sector t.hat is the largc,;t emplopir in India.
\Vhy doc'!! this >1t,'Cl(.)r produt't.l ouly u 4uurtcr of the
national GDP? [COSE 2016]
o,
Expl1ti11 the meaning of disguised employment with
the help of an example
Ans : [CBSE201?)
Primnry sector is the largest ernplo,yer sector in India.
This sector produce only aquarterofthe national GDP
b1,-ca11i;e there is a problem of disguised unemployment.
in this !i!.'CtOr. Though almost 60% people of India are
engilgt'(I iu this S(.'Clor but nil are uot required there.
~1any of them arc extra p-roplr,. They arc forco:110 he
in thi,; sector 1L'I there is less job Op]KJrt1rnitici:, in the
other sectors.
ll What constitutes the unorgani:';L,d sector in the urhrm
nrco.,:lt Why do workers in this area uec<l protL'Ction?
Ans : [CBSE201:0]
Workers in small scale imlu,-try. cas ual •a.orkers in
construction, trude 1111d trunsport constitutes the
nnorganiscd sector in the urhan areas.
\\'orkcrs in unorganiscd sector of the 11rban area..;
IIL'(,~1 prnkc tiou lX.'CRlL<;c
a. They arc paid ,-cry low
t . ,.
b. Their work is errutic mid >l<> the inco me.
15. How does service sector help in the development of
the primary and secondary !IL'Ctors'! Explain with
exarnpk'S.
[CBSE201l]
Tertiary sector d(l('>; not produce any good but it helps
in the production of goods in the primary and the
secondary sectors. For example:
u. Ju the primar.,· sector we Ul't..-<l the ~rvlcc of
tra nsportntion. cold storage. banking etc .. which
comt'S under the service SL'Ctor.
h. In the secondary sector. we need the help or
transportation for bri11giug the mw material,; nud
la kin g the final prodncts to the market. Banking.
trade, t1,-cl111ology clc., a rc the other re<i uirements.
16. \Vith the exm uple of sugarcune. explain the
intcrdcpcndcnoo of all the three sectors of the
L'CUIIUlll}". [CBSE 20151
Ans :
All the thrl'C st-ctors primary, :;()(.'Oud i1ry und tertiary
are highly interdepcndent. They need the hdp of each
other, without which nouc of the sectors would l>c able
to complete its production or scri:ice.
For example: Culth·ulion of sugarcane comes under
the prhmuy sector. This cultii:ated sugarcane. is
the raw 11111teri11l for sugar-making industries (comes
pnder S1.'t..'011d11ry st'Ctor]. Sugarcune is transported 10
the sugar mills with the help of ,·chicles which comes
under the tertill.Ty Sl.'\:tor. Sngiu- made hy SUKar mills
arc further transported to \'arious markets arnl ,;old by
rcluilers und wlwlcsalcrs usiug terti11ry sector.
fl Explain the \.\Urking condition of the workers in
11110rga:ni,;ed stx:tor. [COSE 2015]
Ans :
The working condition of the workers in unorganiscd
They do not follow the rule:. an,! regnlatious
followt-<l by the govcrnr11e11t
h. There are no formal proccs.;;cs nm\ prot't..'< lurci:, in
this !IL'Ctor. Therefore, it ii, cnlled unorganiscd.
There i~ no SL-curit_y of cmplo.rmcut.
d. There are no fixed working hours and workers arc
not, paid for O\"ertime.
There are no benefits like paid holidays, medical
fucilitit'S. snfc workiug environment. pro\·ident
fund etc.
11. Explain disg uised unemployment with two examples,
one from urbnu 11rcu.s um! other rrnm rurnl nrcu.,;.
Aus : ICBSE 2014)
\\/hen more than the required people a rc workin g in
u field. i~ cullt'<I disguist'f.! unemployment. Ju scvernl
urc1~,;. a.11 the members of a family \.\urk in the same
agricuhun1I lund (wh ich is small and doe; uot require
i-o much members]
In urban arni~<;, JK'Ople like plmn hcr. carpenter,
pa.inter are nut able to foul work 011 H duily bas is um!
hence do t he oJd job.
19. "ConS(.'qUenccs of the cuviru11111e11tu.l d1,-gmda.tio11 do
not. rcs1>ect national or state bouudarici,r.'" Explai n.
Ans : ICBSE2014)
04
Yci;, it. i~ true to Sil)" that the COII.SCQUellC<.'S of the
environment11I degriulation do not re;pect national or
state boundaries.
For example: If any country or state causes uir
pollution then it will affect not only to that state
country hut to all throughout the world.
If there is water pollution cu11sec\ hy any sta.tt
co~ ntry the~t it will ufft-ct all stat1,-,;/ coum rit'S throug
wlucli tlic rl\"cr is flowing.
20. How did NllEGA 2(KJ5 hring npliftment of the rural
people? E.xpl11i11.
Ans : ICBSE 2014)
~1ahatma Gandhi National llural Employment.
Guarnntt.>c Act:
a. Thi,- act was passed in the year 2005.
b. According to this Act, 100 duys or guanmlt't..'<.l
employment is provided to all those who nrc able
to work und nrc in lll't..-d ofv,urk in the rnrnl nrcn:s.
c. Unemploy ment allowance i8 pro,·idt'fl to the
workers if the govern 111c111 is not able to provide
1hcm \.\Urkwithin 15dn)'S.
d. This Act helps in providing income imd livelihood
lo the J>t.'Oplc iu the rural arcai,.
2t Explain the intcrdepcndence orall thrcescctol"llgiving
examples from tmnsportation system.
Ans : ICBSE 2014]
Tertiary scclor does not produce any good bllt it helps
in the production of goods in the primary nnd the
secondary sectors. For t>,xample:
a 111 the primary sector, we need the sen·ice of
lraJLSJKJrtatio11 for getting the supply of the
agricultural inputs and al<;0 for selling the food
gra.i1i.s iu the umrkct or supplyiug the 11gricultural
raw matcriuls lo the agro- based in<ht~tri es
b. In the ;w::condnry Sl'Ctor, we Ul't..'(I the hel p of
transportation for bri nging the raw materi»ls and
 lnking the fiwd product.-,i to tl1e market.
c. Trnnsportation is required in the service seclor as
well such as fur providiug 1111..'<licnl fociliti1..-,; to the
1>00ple and other scn·iccs like fire services etc.
tt Highlight the three factors responsible for lhe growt h
of service sector in the Indian economy.
Aus: (CBSE201S)
D110 t o the fo llowing n:'11..<;()I\S. the tertiary sector is
rising in importance in India:
Ilise in the b,u.;ic scn•i<:es providt><.I hy the
government.
b. The dc\"clopment iu t he primary aud secondary
sectors h11s led to the de\·clopment. of the terti11ry
St.'ClOr.
D11r lo the rise i11 income. people have started
spcmliug on tlie 1·;1riow; kiuds of services
23. \Vhy has the entire tertiury St.'Ctor not grow n in
im portance? Explain (CllSE 2012]
Ans:
The service sector includes two different kinds of
pt.'Ople. One who is highly e<lucatc<l, skille<l an<l
earnin g very high such rus d<X:tors, engineers. softwa re
profc:ssirnmh; etc., >UHi on the ot her hand those who
/\re not educated and urn;killt..'<l such I\/; .~treet veudors.
repair persons etc. Though the service i.cctor has
11:ruwn o\·er t he pa.;;t few decades l>ut 11 0\. 11II of the
scrvke sector ha.~ grown equally. The educated and
highly skilk<l wurkcrs luwe grown very high 1d1ercrni
the uneducated ancl the uuskilled 1He still s1ruggling.
: :io:~~~::~:~~·
Why docs disguised employment not help in the
of the country? Explilin wi t h the help of
Ans: ICBS E2012)
In tli e disguist'<I unemployment. extrn pt..'0]1le nrc
working on the fields. They are not required for work.
All st'Cms working. No uue sits idle. They share the
labour effort. They work ]cs,.,. t hnn their potential.
There iH hidden uncmplo}·mcut. Underemployment is
not jusl II fcaturu of the prinll\ry sector. It cau l\ lso
l>e seen in the service sector such ru; J>OOp lc doing odd
job,; like painters, plu1ubcrs etc.
The extra ]>00plc working in these sectors docH
1101. help in increasing the prod nction. T heir pr!'SCncc
or >1bs.m1..~ will not affect tlie total production.
For CXl\ tnJ)l e: if fl piece of land requ ire only 8
people for completing the production but IO ]X'Oplc
urc eugagcd. The two pt..'Oplc working arc extra 11.."! they
do not h11vc any job opport unities outside. The lnml
hm; n limit to produce. Engl\ging more people will not
help in increasing the production from the land
25. Explain the obj1..-clh1::S of im plementin g the NREGA
2005.
Ans: ICBSE2011]
~-lalmtma Gandhi Nn tio1111l Rural Employment
Gunranlt..'c Act:
This Act w11..~ passed in the }'Cl\r 2005.
b. Aocordiug to t his Act, 100 <l1Lys of guarlilltee<l
c111p[oyment. is pro\"idc<l to all thoi.c who arc able
lo work and 11n:' in nt..'1..'<I of work in 1he rum] area.~.
c. Unem ployment 11.llowr111ce is pro\"ided to t.he
11·orkcl"lll if tl1c go\"ernmcnt is riot able to provide
t.hem work \\ith in 15 d rt)"l"l.
lL This Act help!> in providing income nnd lin:Hhood
to the pt..'Ople in Ilic r11rnl I\TC>I>!
26. What is m10rga11ised sec tor'/ De,;crihc the working
procedure of this sector
Ans : ICBSE2009]
Unorganised sector arc the small and scattered units.
These uniti, arc not registered with the govcrnmcllt .
The 1rnrking procedure of this sector are:
They do not fo llow the rules and regulations
follow1..><.I by 1hc go\"crnmeut.
b. There arc no formal pmcci;.<;eg and proced11rcs in
this Sl..>t:tor. T herefore, it is called Unorganiscd.
c. There is no sc,::urity of employment.
d. There is 110 fixe<l working houn; nml workers arc
not, paid forovcrt.ime.
There are no benefits like pnid holidays, mcdic11.l
faci li t ie:,;. safe working cnviromucut. prol'i(lcut
fund etc.
Cf)VE MARKS QUESTIONS :::J
21. Gi\·c fh-e rcnsons for the risiug importance of the
tertiary sector in production. [CBSE 2015]
Aus :
:~~;~:t ~:~.~: ·~: : :.~~:: :'.: :,:~: .:·4:
sectors h,1s led to the development of the ternnr
St.'Ctor
Due to the rise 111 lllCOlllC 1>00ple ha\C startod
spendmg on the VflflOU~ kmds of !;CT\' ICCS.
d. Due to the development of new kimL~ of sen·ices
likc lTSt..'Ctorscrvices
Due to the int roduction of tlic 11ew 1..-couomic policy
lihcralisntion, privatisation and glohalisation. the
trndc cxpuud1..'tl l!..!l over the world mid the role of
sen ·ice sector became significant.
21. Describe the provision~ of National Rural Employment
Guarantee Act, 2005.
Au.s: (CBSE2014I
Malmtma Gandhi Nat ional Rural Ernp\oymcnt
Cuurn11t1..'CAct:
This net w11..~ passed in the year 2tJ05.
b . Aecordiug to this Act, 100 days of guarantt..'l..'l..i
em1>loyment. is provided 10 all those who are ahle
to work t111d nrc in need of work in the rurul areas.
Unemploym ent al1U1\"l!.nce is pro\·idt..><.I to the
workers if the government is not able to provide
them work within 15 d11.ys.
d . This net helps in pro\'iding income and li\'Clihood
to the pL'Ople in the rnrn l area.~.
29. W hat is GDP? Explain the proces."! to c11.lculate
CDP.
Ans : ICBSE2D14]
CDP can he defi11ed a.~ the total value of /\II the final
gOO<I$ nud services pro<luced by t he thrt..'C different
 sectors in a cou nt ry in a fina ncial year.
G DP is H comp le:,; task. It is undertaken by the
Centml Governmcut rn inistry uftcr col!ccting a ll the
rl atafro rn thc rl iffcrcnt.Htatcsanrl th cunionterritorics
:II. Compare t he cm plo~•mcnt condit io ns prcvn.il ing in 1hc
orgaui~ aud 1morgaui'i!.'(I Sl.'Clor?
Aus : [CBS£20U]
The comparison hct wccn the employment conditions
pre\'nili ng in t he organised a ud 11uorganiS1.'<I sect or is
11..~ follows ·

Orgnubcd &'(;tor
I. T hese are th e big units. T hei;i: 11.rc t he sma ll
and senUerL-d units.
2. These 1miL~ are These units arc not
regh,tered with the rcgi~t ercd with the
govern ment. gm·er11n1ent .
3. They follow the T l1cy (lo ri ot follow t,he
ru les and regulntions ruk>s 011d regu lations
followcd hy the followe<l hy the
government. gm·emmcnt.
,1. T here some T here are no formal
formn\ proc"C:!6CS and procC:ol6CS aud
proct..'<lllfL>s in t his procedures in t his
sco::tor. T herefore, it is i;cct or. Therefore, it is
eallL'(I oq,,;1mi'i!.'(I. cnlh l Unor,11;1miSL-d.
5. T here is security of T here is no secur ity of
employment. cmploymcm,
6 T here is fixed vrorking T here is no fixed
hour:; uud worker:; arc working hour:; and
paid for O\'CTt ime. worker.; are not paid
for overtime.
7 T here nrc some ot her T l1crc 11m no bencfiL~
benefits like pa id li ke paid holidnys,
lioliduys. mL-dieal mt.-dieul facilitk>s, safo
- facilities, safe worki ng work ing environment ,
envi ronment. provident prov ident fu nd etc.
f11n d et c.
:It In what wnyij enn employment be increased in urba n
!lfeus?
Aus : [CBS£2011 ]
Job opportuni t ies can be incre11Sed in the urbnu nrcns
t hroug h the following wnys:
I\, Gm-ernment shou ld invest in transport at ion a nd
stornge.
b. Gon: rmncnt sho11ld provide loan to the people for
startiug their own businl'S.':! at. reru;onable rate of
intCTL'S t.
c. Opportun ities for new im\ustric,; should be
idcutifk-d, locntL-d au<l promut L-d iu the smull
towns.
d . OJ>e ning of the sen•ices like t he cold stomgcs.
.Jobs C H.ll be created in t he field of educat ion.
health a nd tou rism sector
r. J ob!! cnu be ereulL'< I by humehi ng t he \'arious
gm·crnmcnt schcmci-.