NCERT Class 10 Social Science Economics Chapter 2

NCERT Class 10 Social Science Economics Chapter 2 Sectors of the Indian Economy

The NCERT Class 10 Social Science Economics Chapter 2 Sectors of the Indian Economy Solutions offer comprehensive answers to the exercise questions found in the textbook. These solutions serve as valuable practice material for students in their preparation for the Social Science exam. By adopting the answers provided in these solutions during the exam, students can significantly improve their chances of scoring higher marks. Regularly solving these exercises will familiarize students with the most effective approaches to tackle various question types encountered in the annual examination.

1. Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector _________ increased to the same extent as production. (has/has not)
(ii) Workers in the _________ sector do not produce goods. (tertiary/agricultural)
(iii) Most of the workers in the _________ sector enjoy job security. (organised/unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large/small)
(v) Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]
(vi) The activities in primary, secondary, and tertiary sectors are_________ [independent/interdependent]

Ans. a) has not
b) tertiary
c) organised
d) large
e) natural, manufactured
f) interdependent

2. Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:
(i) Employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

Ans. Ownership of enterprises

(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) Information technology

Ans. Primary

(c) GDP is the total value of _________ produced during a particular year.
(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

Ans. All final goods and services

(d) In terms of GDP the share of the tertiary sector in 2013-14 is between _________ percent.
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70

Ans. 50 to 60

3. Match the following:

Problems faced by the farming sector Some possible measures
1. Unirrigated land (a) Setting up agro-based mills
2. Low prices for crops (b) Cooperative marketing societies
3. Debt burden (c) Procurement of food grains by the government
4. No job in the off-season (d) Construction of canals by the government
5. Compelled to sell their grains to the local traders soon after harvest (e) Banks to provide credit with low interest


Problems faced by the farming sector Some possible measures
1. Unirrigated land (d) Construction of canals by the government
2. Low prices for crops (c) Procurement of food grains by government
3. Debt burden (e) Banks to provide credit with low interest
4. No job in the off-season (a) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest (b) Cooperative marketing societies

4. Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
(ii) Teacher, doctor, vegetable vendor, lawyer
(iii) Postman, cobbler, soldier, police constable
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Ans. (i) Tourist guide
(ii) Vegetable vendor
(iii) Cobbler
(iv) Jet Airways

5. A research scholar looked at the working people in the city of Surat and found the following.

Place of work Nature of employment Percentage of working people
In offices and factories registered with the government Organised 15
Own shops, office, clinics in marketplaces with formal license 15
People working on the street, construction workers, domestic workers 20
Working in small workshops usually not registered with the government

Complete the table. What is the percentage of workers in the unorganised sector in this city?


Place of work Nature of employment Percentage of working people
In offices and factories registered with the government Organised 15
Own shops, office, clinics in marketplaces with formal license Organised 15
People working on the street, construction workers, domestic workers Unorganised 20
Working in small workshops usually not registered with the government Unorganised 50

6. Do you think the classification of economic activities into primary, secondary, and tertiary is useful? Explain how.

Ans. The classification of economic activities into primary, secondary, and tertiary sectors serves several valuable purposes. It aids in categorizing the diverse occupations undertaken by individuals in a country and provides insight into the contributions of each sector toward national growth. This classification also plays a crucial role in identifying the sector that contributes the most to the Gross Domestic Product (GDP) and determining which sector has the potential to generate more employment opportunities and increase the National Income.

By categorizing economic activities into primary, secondary, and tertiary sectors, policymakers and economists gain a comprehensive understanding of the structure and dynamics of the economy. This classification allows for effective analysis of sector-specific trends, resource allocation, and policy formulation. It helps in identifying the strengths and weaknesses of each sector, enabling strategic decision-making to enhance overall economic development.

7. For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

Ans. Employment and GDP are pivotal elements in the development of a country, as they play a significant role in measuring overall productivity and national income. A high employment rate directly correlates with an increase in GDP, national income, and per capita income. This chapter emphasizes the importance of these factors in understanding a country’s economic progress. However, it is crucial to examine additional issues that impact development, including:

1) Healthcare facilities: Accessible and effective healthcare services are vital for the well-being of the population and contribute to overall development.

2) Education: A robust education system empowers individuals, fosters skill development, and promotes social mobility.

3) Poverty: Addressing poverty is crucial for inclusive development. Effective poverty alleviation measures ensure equitable distribution of resources and opportunities, reducing income disparities and promoting social cohesion.

4) Food production: Ensuring sufficient food production and addressing food security challenges are essential for a country’s development.

5) Nourishment: Adequate nourishment and proper nutrition are essential for individual well-being and cognitive development.

8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.

Ans. Human activities that support livelihoods are categorized into three sectors: primary, secondary, and tertiary. By observing the people around us, we can classify their employment sectors based on these distinctions. Activities such as cleaning, agriculture, and selling vegetables fall under the primary sector, which involves the direct extraction or production of raw materials from nature. The secondary sector encompasses activities like the manufacturing and processing of goods. Finally, the tertiary sector includes occupations like teaching, mining, banking, and transportation, which involve providing services to individuals or businesses.

9. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Ans. Tertiary activities refer to the activities that support the development of the primary and secondary sectors. They differ from the activities in the primary and secondary sectors as they do not involve direct production of goods. Instead, they provide assistance or support to the production process. For instance, transportation of goods produced in the primary or secondary sectors requires trucks or trains, and the selling of these goods takes place in wholesale and retail shops. The transportation facilities and shopkeepers involved in these processes are part of the tertiary sector. Although they do not produce goods themselves, they play a vital role in bringing goods to the market and facilitating their sale.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Ans. Disguised unemployment refers to a situation where individuals are working, but their labor is underutilized, and they are not fully employed according to their potential. It occurs when there are more workers engaged in a particular task than necessary, resulting in inefficiency and reduced productivity. This phenomenon is commonly observed in rural areas, where agriculture is the primary source of income.

In rural settings, disguised unemployment can be witnessed when a piece of land requires only three individuals for effective cultivation, but five people are engaged in the task. In this scenario, the surplus two workers are considered to be experiencing disguised unemployment since their presence does not contribute significantly to the overall productivity of the land.

Similarly, in urban areas, disguised unemployment can be observed among skilled workers such as painters, plumbers, and electricians. Due to limited job opportunities or fluctuating demand for their services, these workers struggle to find daily employment and end up working below their potential capacity.

11. Distinguish between open unemployment and disguised unemployment.

Ans. Open unemployment occurs when a person who wants to work and has the necessary education or skills is unable to find a job. It is visible because these individuals actively seek employment but are unable to secure it.

On the other hand, disguised unemployment refers to a situation where a person appears to be working, but their actual contribution is less than their potential. This type of employment is often seen in rural areas, particularly among people working in farms. Even though they consider themselves employed, they are actually working less than what is needed or required for the task at hand.

12. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

Ans. No, this is not correct. The tertiary sector indeed plays a significant role in the development of the Indian economy. In fact, in 2003, it surpassed the primary sector to become the largest contributing sector in the country. Here are a few reasons supporting the importance of the tertiary sector:

  • The primary and secondary sectors can only flourish if the tertiary sector is there.
  • The tertiary sector adds up a lot to the National income of the country.
  • Education comes under the tertiary sector.
  • Tertiary provides the maximum employment opportunities to the people in the country.

13. Service sector in India employs two different kinds of people. Who are these?

Ans. The service sector in India employs two different types of people-

Highly Skilled labor (For example- teachers, bankers, etc.)
Less Skilled Labour (For example- electricians, plumbers, etc.)

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Ans. The unorganised sector consists of small and dispersed units that operate independently from government control. While rules and regulations exist, they are often not followed in this sector. Jobs within the unorganised sector are typically low-paid and irregular, which leads to the exploitation of workers. They are often required to work longer hours without fair compensation, as there are no provisions for overtime pay. Additionally, workers in the unorganised sector lack access to medical benefits. The absence of job security is a significant issue faced by those working in this sector.

15. How are the activities in the economy classified on the basis of employment conditions?

Ans. Based on employment conditions, the economy can be divided into two sectors:

Organised Sector: This sector comprises enterprises that are registered under the Government of India. These organizations typically provide a worker-friendly environment and offer various facilities, including higher wages, to their employees.

Unorganised Sector: The unorganised sector consists of small and scattered units that are often temporary in nature. Workers in this sector tend to receive lower wages compared to those in the organised sector.

16. Compare the employment conditions prevailing in the organised and unorganised sectors.

Ans. In the organised sector, employees receive higher wages, have access to medical facilities, work in a healthy environment, and enjoy job security with permanent positions. They are not required to search for new sources of income daily.

However, in the unorganised sector, wages are low, employees may face exploitation, there is no additional payment for working overtime, medical facilities are usually unavailable, and the work environment is often unhealthy.

17. Explain the objective of implementing the NREGA 2005.

Ans. The National Rural Employment Guarantee Act, 2005 was implemented to ensure that those in need of work have a guaranteed 100 days of employment per year. If employment cannot be provided under this act, unemployment wages will be given to those who remain unemployed. To further support people in rural areas and smaller towns, it is important to create additional employment opportunities.

18. Using examples from your area compare and contrast that activities and functions of private and public sectors.

Ans. The private sector consists of assets and industries that are owned by individuals, while the public sector comprises industries and enterprises owned by the government. In the private sector, the primary objective is to earn profits, while the public sector aims to provide facilities to the public while also generating profits. Examples of the public sector include government banks, post offices, municipal hospitals, and Indian railways. On the other hand, examples of the private sector include IT companies, malls, and multiplexes, among others.

19. Discuss and fill the following table giving one example each from your area.

Well managed organisation Badly managed organisation
Public sector
Private Sector

Ans. Must Answer on the basis of own observation.

20. Give a few examples of public sector activities and explain why the government has taken them up.

Ans. The public sector is dedicated to serving the welfare of the public. The government has established the public sector to ensure that essential facilities and services are provided to the people of the country. Sectors such as banking, transportation, irrigation, electricity, and water supply, among others, fall under the umbrella of the public sector. The government assumes the responsibility of offering these fundamental necessities to its citizens.

21. Explain how public sector contributes to the economic development of a nation.

Ans. The public sector in India is under the control of the government. The government assumes responsibility for this sector as it encompasses essential services and necessities for the people, such as water supply, electricity, and irrigation. Neglecting these sectors could have adverse effects on the country’s economy, hindering its growth. The economic development of a nation relies on the well-being of its people, and if they lack access to basic necessities, it will impact the country’s progress. The government plays a crucial role in promoting the growth of small and large industries and providing employment opportunities within the public sector.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.

Ans. The unorganised sector comprises small and dispersed units that largely operate independently from government control. While there are rules and regulations in place, they are often not followed. Workers in the unorganised sector require protection in several areas:

Wages: The income of workers in the unorganised sector is often uncertain and insufficient to sustain a decent livelihood. It is crucial to provide these workers with proper and fixed wages to support their growth and enable them to contribute to the country’s progress. For instance, a painter may only earn wages for the days they work, leaving them without income on other days.

Safety: Workers in the unorganised sector lack job security and face the risk of being dismissed or losing their work based on the requirements of employers. For example, a construction laborer may be left unemployed once a construction project is completed, with no guarantee of finding work again.

Health: Access to healthcare is essential for the overall growth and development of a country. However, workers in the unorganised sector often do not receive medical benefits or support. If they experience an accident or illness while working, their employers are not responsible for their healthcare. For instance, laborers on daily wages may not have access to sick leave or medical assistance.

23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?

Ans. It is clear that the income generated in unorganised sector is close to 50% of the total income of Ahmedabad. In order to increase employment opportunities for the people more industries should be set up, proper education must be provided to all and proper facilities under the public sector must be provided to all.

24. The following table gives the GDP in Rupees (Crores) by the three sectors:

Year Primary Secondary Tertiary
2000 52,000 48,500 1,33,500
2013 8,00,500 10,74,000 38,68,000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?

Ans. (i) In 2000, primary sector = 22.22%, secondary sector = 20.73%, tertiary sector = 57.04%
And In 2013, primary sector = 13.94%, secondary sector = 18.70%, tertiary sector = 67.36%


(iii) The share of the tertiary sector in the GDP has increased by 10%, while that of the primary sector has almost halved. The secondary sector has grown by about 2% in the last 13 years.

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