2021-22

E Resource Material for Home Learning

Subject- Social Science (Economics)
Class-X Day-2
CHAPTER-2 SECTORS OF INDIAN ECONOMY
Multiple Choice Questions
Ques1.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 what 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 trans-actions of a country in a particular year.
Answer (a)
Ques2.Identify the natural product from the list of items given below:
(a) Textile
(b) Wheat flour
(c) Cotton
(d) Tomato sauce
Answer (c)
Ques3.Which of the following examples does not fall under unorganized sector?
(a) A farmer irrigating his field.
(b) A doctor in a hospital treating a patient.
(c) A daily wage labourer working for a contractor.
(d) A handloom weaver working on a loom in her house.
Answer (b)
Ques4. Identify the correct answer from the alternatives provided. Both Tisco and Reliance Industries are owned by:
(a) The government
(b) Jointly by private companies and the govt
(c) A cooperative society
(d) Private company
Answer (d)
Ques5. NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed ………. days of employment in a year
in many districts of India. What are the correct number of days?
(a) 200 days
(b) 100 days
(c) 30 days
(d) 60 days
Answer (b)
Ques6. 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.
Answer (c)
Ques7. Which sector has emerged as the largest producing sector in India. Select one from the following alternatives:
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Science and Technology sector
Answer (b)
Ques8. Where will you find the disguised unemployment most? Select the correct option from those given below:
(a) Among agricultural workers working for small farm lands
(b) Among part-time industrial workers
(c) In most of the government offices
(d) In big private companies
Answer (a)
Ques9.How do big private companies contribute in the development of a nation?
(a) By increasing the demands for their products through advertisements.
(b) By increasing their profits.
(c) By increasing productivity of the country in the manufacturing of industrial goods.
(d) By providing private hospital facilities for the rich.
Answer (c)
Ques10.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)
QUESTIONS AND ANSWERS: -
Ques1.What is disguised unemployment?
Answer: Disguised unemployment is a situation in which more people are employed on a job than the required number.
Ques 2. Suggest any one way to create employment opportunity in the rural areas.
Answer: Setting up a mill, opening a cold storage, starting or promoting honey collection are some of the ways of
creating employment opportunities in rural areas.
Ques3.Explain how public sector contributes to the economic development of a nation.
Answer: In the public sector, ownership of assets and delivery of services is under the government. The government
spends huge amounts of money in providing various services to the public at reasonable costs. The government thus
contributes towards the economic development of the nation:
I. By development of infrastructure, i.e. Construction of roads, national highways, flyovers, metro-rails, railway
lines, irrigation through dams, etc.
II. The government provides an impetus to industrial growth by supplying electricity at affordable rates.
III. By running schools and providing good quality of education, the government is trying to remove illiteracy and
taking the nation forward.
Ques4.Why is NREGA also called the Right to work? Explain the objectives of National Rural Employment Guarantee Act
2005.
Answer: Every state or region in India has potential for increasing the income and employment in that area. Recognising
this, the Central Government in India has passed an act called the National Rural Employment Guarantee Act 2005,
Main objectives of the NREGA 2005 are:
I. To implement the Right to Work in 200 districts of India.
II. To guarantee 100 days of employment in a year by the Government. In case the Government fails, it offers
unemployment allowance.
III. To give preference to the type of work that will help increase the production from land.
Ques5. “The problem of underemployment is not confined only to agriculture”. Support the statement with examples.
Answer: The problem of underemployment is not confined only to agriculture. It can also happen in other sectors.
For example, there are thousands of casual workers in the service sector in urban areas who search for daily
employment. They are employed as painters, plumbers, repair persons and other odd jobs. Many of them don’t find
work every day.
Similarly, we see other people of the service sector on the street pushing a cart or selling something where they may
spend the whole day but earn very little. They are doing such work only due to the lack of better employment
opportunities.
The unorganised sector includes small and scattered units outside the government control. Employment is not secure.
People can be asked to leave without any reason. When there is less work, such as during some seasons, some people
may be asked to leave.
Ques6.Explain any three ways to solve the problem of underemployment.
Answer: There are people who are capable of better work and earning more than what they are getting. The reason for
this is that better jobs for which they are qualified are not available. Such people are termed as underemployed, e.g., a
graduate teacher driving a taxi. Underemployment is most prevalent in the primary or agricultural sector.
Three ways to solve the problem of underemployment:
Provision of loans may help in creating jobs for disguised unemployed and underemployed workers.
The loan money can be used for the promotion of economic activity of the family adding to the family’s earning or for
setting up a cottage industry.
Another way is to promote and locate industries and services in semi-rural areas where a large number of people may
be employed.
Example, setting up a dal mill, opening a cold storage, starting or promoting honey collection.
If local banks give credit to farmers at a reasonable rate of interest, they will be able to buy agricultural inputs and
increase productivity.
Centres for vegetables and fruit processing, health centres, educational institutions, tourism and IT centres will certainly
help in creating jobs.
Ques7.Why didn’t shift out of primary sector happen in case of employment although there has been a change in the
share of the three sectors in GDP?
Answer: A remarkable fact about India is that while there has been a change in the share of the three sectors in GDP, a
similar shift has not taken place in employment.
A similar shift out of primary sector did not happen in case of employment because not enough jobs were created in the
secondary and tertiary sectors.
Even though industrial output or the production of goods went up by eight times during the period, employment in the
industry went up by only 2.5 times.
While production in the service sector rose by 11 times, employment in the service sector rose less than three times.
As a result, 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.
Question8.Classify the economic sectors on the basis of nature of activities. Mention the main feature of each.
Answer: On the basis of nature of activities, economic sectors are classified into:
a. Primary sector
b. Secondary sector
c. Tertiary sector
1.Primary sector forms the base for all other products that we subsequently make. Since most of the natural products
we get, are from agriculture, dairy, fishing, forestry, this sector is also called sector for agriculture and related activities
(stone quarrying, animal husbandry, etc.).
2.Secondary sector covers activities in which natural products are changed into other forms through ways of
manufacturing. It can take place in a factory, workshop or at home.
Examples:
(a) Spinning yam from cotton fibre from plants.
(b) Making sugar from sugarcane.
It is also called the Industrial sector.
3.Tertiary sector. Activities in this sector do not produce any goods. This sector produces services that act as aid and
support to the Primary and Secondary sectors. Services like administration, police, army, transport, hospitals,
educational institutions, post and telegraph, courts, municipal corporation, insurance companies, storage, trade
communication and banking are some of the examples of activities of the Tertiary sector. This sector is also known as
Service sector.
Ques9.What is meant by Gross Domestic Product (GDP)? How is GDP measured in India?
Answer: Gross Domestic Product (GDP) of a country is the value of all the final goods and services produced in each
sector within a country during a particular year. This indicates how big the country’s economy is. GDP is measured by the
Central Government Ministry. This Ministry, with the help of all the Indian States and Union Territories, collects
information relating to total volume of goods and services and their prices and then makes an estimate of the GDP.

Ques 10. Service sector in India employs two different kinds of people. Who are these?
Answer: Service sector in India employs two different types of people. These people are:

1. Highly Skilled labour, which includes teachers, bankers, IT officials, etc. These people are permanently
employed.
2. Less Skilled Labour, which includes vendors, electricians, plumber, etc. These people are not permanently
employed.

Ques11. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your
answer.
Answer: The unorganised sector is characterised by small and scattered units, which are largely outside the control of
the government. There are rules and regulations but these are not followed. Jobs here are low paid and not regular.
Hence, it is correct to say that workers are exploited in the unorganised sector because more work is taken from them in
comparison to what they are paid. They have no provisions or extra pay for overtime and no medical benefits. The
biggest problem in working in this sector is that there is no job security.
Ques12. How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of the employment conditions, the economy can be classified into two sectors:

1. Organised Sector: Enterprises registered under the Government of India, who have an employee-friendly
environment and are provided with various facilities including high wages.
2. Unorganised Sector: Small and scattered units which are temporary. The employees in this sector are paid less.

Ques13. Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer: In the organised sector, the employees are given higher wages, medical facilities, a healthy working
environment and their jobs are permanent. They are not liable to look for a new source of income each day. In the
unorganised sector, the wages are low, the employees are exploited, no extra income for extra time is given, no medical
facilities are provided and the work environment is unhealthy.