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

NCERT Solutions Class 10 Social Science Economic 
(Understanding Economic Development)

The NCERT Solutions in English Language for Class 10 Social Science – Economic (Understanding Economic Development) Chapter – 2 (Sectors of the Indian Economy) has been provided here to help the students in solving the questions from this exercise. 

Chapter – 2 (Sectors of the Indian Economy) 

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)
Answer –
(i) Employment in the service sector has not increased to the same extent as production. 
(ii) Workers in the tertiary sector do not produce goods. 
(iii) Most of the workers in the organised sector enjoy job security. 
(iv) A large proportion of labourers in India are working in the unorganised sector. 
(v) Cotton is a natural product and cloth is a natural product. 
(vi) The activities in primary, secondary and tertiary sectors are independent.

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
Answer – (iii) 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
Answer – (i) 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
Answer – (ii) all final goods and services

(d) In terms of GDP the share of tertiary sector in 2010-11 is _________
(i) between 20 to 30 per cent
(ii) between 30 to 40 per cent
(iii) between 50 to 60 per cent
(iv) 70 per cent
Answer – (iii) between 50 per cent to 60 per cent

3. Match the following :

Answer –

4. Find the odd one out and say why.
1. Tourist guide, dhobi, tailor, potter
2. Teacher, doctor, vegetable vendor, lawyer
3. Postman, cobbler, soldier, police constable
4. MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio
Answer –
1. Tourist guide, dhobi, tailor, potter (Tourist guide) 
2. Teacher, doctor, vegetable vendor, lawyer (Vegetable vendor)
3. Postman, cobbler, soldier, police constable (Cobbler)
4. MTNL, Indian Railways, Air India, Jet Airways, All India Radio (Jet Airways)

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

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

Answer –

The percentage of workers in the unorganised sector in this city is 70%. We find many organised sector enterprises in the unorganised sector because they want to evade taxes and refuse to follow the laws protecting the labourers.

6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer – The classification of economic activities into primary, secondary and tertiary is useful, as it helps to classify the different occupations that are taken up by the people in the country and how much each sector contributes to the growth of the country. It is also important because it helps in asserting that which sector contributes the most in the GDP and which sector has the scope to employ more people and increase the National Income.

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.
Answer – For each of the sectors that we came across in this chapter, one should focus on employment and GDP because these determine the size of a country’s economy. A focus on employment and GDP helps determine two important things—per capita income and productivity. Hence, in each of the three sectors, employment rate and status as well as its contribution to the GDP help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.

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.
Answer – Some Samples of Work People Do and Their Classification

9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer – The tertiary sector is different from the other sectors because it does not manufacture or produce anything. For this reason, it is also known as the service sector. It aids the primary and secondary sectors in development. The tertiary sector involves services like transport, storage of goods, communications, banking and administrative work.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer – Disguised unemployment refers to a situation in which people appear to be working but in reality their productivity is zero. That is, even if they are removed from their work, there is no effect on the total productivity. Disguised unemployment is found on a large scale in the agricultural sector in the villages of India. For example, more laborers work on a small piece of land because they do not have any other work. This creates a situation of disguised unemployment. Similarly, disguised unemployment is found in small shops and small businesses in cities.

11. Distinguish between open unemployment and disguised unemployment.
Answer –

12. “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.
Answer – “Tertiary sector is not playing any significant role in the development of the Indian economy”. This statement is not true. The tertiary sector has contributed vastly to the Indian economy, especially in the last two decades. In the last decade, the field of information technology has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

13. Service sector in India employs two different kinds of people. Who are these?
Answer – Service sector in India employs two different kinds of people. These are primary and ancillary workers. Primary workers include those who directly provide services while ancillary workers are composed of those who give services to the service providers. For example, consultants make available their services to consultancy firms etc.

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer – Workers are exploited in the unorganised sector. I agree with this view. The unorganised sector does not offer any job security. Neither does it allow for scope of trade or workers’ unions. Workers can be easily exploited in this scenario. They cannot afford to rebel against an employer’s tyranny as the latter can fire them at any time.

15. How are the activities in the economy classified on the basis of employment conditions?
Answer – On the basis of employment conditions, activities in the economy are classified as organised and unorganised. The organised sector offers job security and employment benefits, while the unorganised sector is marked by low wages and lack of job security. In rural areas, the unorganised sector comprises landless agricultural labourers, sharecroppers and artisans. In urban areas, this group contains small-scale industry workers, construction workers, street vendors, rag-pickers, etc.

16. Compare the employment conditions prevailing in the organised and unorganized sectors.
Answer – The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

17. Explain the objective of implementing the NREGA 2005.
Answer – The objective of implementing the NREGA 2005 are:

• To increase the income and employment of people.
• Every state/region can develop tourism, regional craft, IT etc. for additional employment.
• The central government made a law implementing the right to work in 200 districts.
• NREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.

18. Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer – Some Samples of Work People Do and Their Classification

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

Answer –

20. Give a few examples of public sector activities and explain why the government has taken them up.
Answer – The public sector activities are set for the betterment of the public itself. The reason the government has taken up the public sector is so that proper facilities can be provided to the people of the country. Banks, transport, irrigation, electricity, water and all the basic things that are necessary for people, come under the public sector. Providing these facilities to its citizens is the responsibility of the Government.

21. Explain how public sector contributes to the economic development of a nation.
Answer – In the following ways Public sector contributes to the economic development of a nation:

• It promotes rapid economic development through the creation and expansion of infrastructure.
• It creates employment opportunities.
• It generates financial resources for development.
• It ensures equality of income and wealth, thus a balanced regional development.
• It encourages development of small, medium and cottage industries.
• It ensures easy availability of goods at moderate rates.

Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
Answer – Workers in the unorganised sector require protection in terms of wages. Labourers who are employed as vendors or repair men etc. do not have fixed income. They hardly get employed throughout the year.

• Safety: Workers in the unorganised sector are not provided with safe drinking water or a clean environment. Example: Working in mining, chemical industries is hazardous.

• Health: Leave is not granted if there is a health issue. Medical aid is not available, e.g., Construction workers.

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?
Answer –

It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, the government should introduce some incentives so that more industries could be opened up in the organized sector.

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

(i) Calculate the share of the three sectors in GDP for 2000 and 2013
Answer – 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%

(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
Answer –

(iii) What conclusions can we draw from the bar graph?
Answer – We can draw the conclusion that 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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