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ECONOMICS (UNDERSTANDING ECONOMIC DEVELOPMENT) - 10 - Social Science solution

Class 10 - Chapter 2: Sectors of the Indian economy

NCERTChapter 2Solution

1. Fill in the blanks using the correct option given in the bracket.

(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 manufactured product.

(vi) The activities in primary, secondary and tertiary sectors are interdependent.

2. Choose the most appropriate answer.

(a) The sectors are classified into public and private sector on the basis of:

Answer: (iii) ownership of enterprises

Explanation: Public sector enterprises are owned and managed by the government, whereas private sector enterprises are owned and managed by private individuals or companies.

(b) Production of a commodity, mostly through the natural process, is an activity in the ______ sector.

Answer: (i) primary

Explanation: Activities such as agriculture, fishing, forestry and mining depend mainly on natural resources and therefore belong to the primary sector.

(c) GDP is the total value of ______ produced during a particular year.

Answer: (ii) all final goods and services

Explanation: GDP includes only final goods and services to avoid double counting.

(d) In terms of GVA the share of tertiary sector in 2017–18 is between ______ per cent.

Answer: (iii) 50 to 60

Explanation: The tertiary sector contributes more than half of India's Gross Value Added and is the largest sector of the economy.

3. Match the following.

Problems Faced by Farming Sector 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 grains to local traders soon after harvest (b) Cooperative marketing societies

4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter

Odd One: Potter

Reason: Potter belongs to the secondary sector as he manufactures goods, while the others provide services and belong to the tertiary sector.

(ii) Teacher, doctor, vegetable vendor, lawyer

Odd One: Vegetable vendor

Reason: A vegetable vendor is engaged in trading activities, whereas teacher, doctor and lawyer provide professional services.

(iii) Postman, cobbler, soldier, police constable

Odd One: Cobbler

Reason: Cobbler generally works in the private sector, whereas the others are government employees working in the public sector.

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Odd One: Jet Airways

Reason: Jet Airways belongs to the private sector, while the others belong to the public sector.

5. 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
Offices and factories registered with the government Organised 15%
Own shops, offices and clinics with formal licence Organised 15%
People working on streets, construction workers, domestic workers Unorganised 20%
Small workshops not registered with government Unorganised 50%

Total workers in unorganised sector = 20% + 50% = 70%

Answer: 70% of workers are employed in the unorganised sector.

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

Answer:

Yes, the classification of economic activities into primary, secondary and tertiary sectors is very useful.

Benefits of Classification

  1. It helps us understand the structure of the economy.
  2. It shows the contribution of each sector to national income.
  3. It helps the government formulate development policies.
  4. It enables comparison of economic development over time.
  5. It helps identify sectors needing more investment and employment opportunities.

Thus, this classification provides a clear picture of economic activities and their contribution to development.

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

Answer:

Employment and Gross Value Added (GVA) are important indicators because they show how much output a sector produces and how many people it employs.

Why Focus on Employment?

  • Shows availability of jobs.
  • Indicates living standards of people.
  • Helps reduce poverty.

Why Focus on GVA?

  • Measures contribution to national income.
  • Shows economic growth of sectors.
  • Helps compare sectoral performance.

Other Issues to Examine

  • Income distribution
  • Working conditions
  • Job security
  • Gender equality
  • Environmental sustainability
  • Social welfare and labour rights

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:

Adults around us perform many different occupations such as:

  • Farmers
  • Teachers
  • Doctors
  • Engineers
  • Shopkeepers
  • Drivers
  • Police personnel
  • Bank employees
  • Tailors
  • Electricians
  • Lawyers
  • Construction workers
  • Factory workers
  • Nurses
  • Government officers

Classification

Primary Sector: Farmers, fishermen, miners.

Secondary Sector: Factory workers, carpenters, potters.

Tertiary Sector: Teachers, doctors, bankers, lawyers, drivers.

This classification is useful because it groups occupations according to the nature of economic activity performed.

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

Answer:

The tertiary sector provides services rather than producing goods.

Primary Sector Secondary Sector Tertiary Sector
Uses natural resources Manufactures goods Provides services
Agriculture Industry Transport, Banking, Education
Produces raw materials Converts raw materials into goods Supports production and consumption

Examples: Teacher, doctor, banker, transport operator, lawyer and insurance agent.

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

Answer:

Disguised unemployment occurs when more people are employed in a job than are actually required.

Rural Example

Suppose five family members work on a small farm where only three workers are needed. If two workers leave, production remains unchanged. These extra workers are disguisedly unemployed.

Urban Example

In a small shop, four people may be employed although only two are required. The extra workers contribute very little to production and are disguisedly unemployed.

11. Distinguish between open unemployment and disguised unemployment.

Open Unemployment Disguised Unemployment
People are willing to work but cannot find jobs. People appear employed but their contribution is negligible.
Visible unemployment. Hidden unemployment.
Common in urban areas. Common in agriculture.
Worker has no job. Worker has a job but is not fully utilised.

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

Answer:

No, I do not agree.

Reasons

  1. Tertiary sector contributes the largest share to India's GDP.
  2. It provides employment to millions of people.
  3. Banking, transport, communication and education support all other sectors.
  4. Rapid growth of information technology has increased its importance.
  5. Rising income levels have increased demand for services.

Therefore, the tertiary sector plays a crucial role in India's economic development.

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

Answer:

The service sector employs:

  1. Highly skilled and educated professionals such as doctors, teachers, engineers and lawyers.
  2. Less skilled workers such as shop assistants, drivers, cleaners, security guards and domestic workers.

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

Answer:

Yes, workers in the unorganised sector are often exploited.

Reasons

  1. Low and irregular wages.
  2. No job security.
  3. Long working hours.
  4. No paid leave.
  5. No provident fund or pension benefits.
  6. Poor working conditions.
  7. Labour laws are often not properly implemented.

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

Answer:

On the basis of employment conditions, economic activities are classified into:

1. Organised Sector

  • Registered with the government.
  • Follows labour laws.
  • Provides job security and fixed working hours.

2. Unorganised Sector

  • Not registered with the government.
  • Job security is absent.
  • Workers receive low wages and fewer benefits.

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

Organised Sector Unorganised Sector
Registered with the government. Not registered with the government.
Follows labour laws and regulations. Labour laws are often not followed.
Workers enjoy job security. Workers have little or no job security.
Fixed working hours. Long and irregular working hours.
Paid leave, provident fund and pension facilities are available. Such facilities are generally absent.
Better wages and working conditions. Low wages and poor working conditions.

Hence Workers in the organised sector enjoy better protection and benefits than those in the unorganised sector.

17. Explain the objective of implementing the MGNREGA 2005 or Viksit Bharat-RAM G 2025.

Answer:

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 was introduced to provide livelihood security to rural households.

Main Objectives

  1. To provide at least 100 days of guaranteed wage employment to every rural household willing to do unskilled manual work.
  2. To reduce rural unemployment and poverty.
  3. To create durable community assets such as roads, ponds and irrigation facilities.
  4. To strengthen the rural economy.
  5. To reduce migration from villages to cities.

This scheme has helped millions of rural families earn income and improve their standard of living.

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

Answer:

Public Sector Private Sector
Owned and controlled by the government. Owned and managed by private individuals or companies.
Main objective is public welfare. Main objective is earning profit.
Examples: Government schools, government hospitals, Indian Railways. Examples: Private schools, private hospitals, shopping malls.
Provides essential services even if profits are low. Invests where profits are expected.

Example from a locality: A government hospital serves all citizens at low cost, whereas a private hospital charges higher fees but may provide specialised services.

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

Well Managed Organisation Badly Managed Organisation
Public Sector Government Senior Secondary School Neglected Public Bus Depot
Private Sector Reputed Private School Poorly Managed Small Factory

Note: Students may write examples from their own locality.

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

Answer:

Examples of Public Sector Activities

  • Indian Railways
  • Government Hospitals
  • Government Schools
  • Postal Services
  • Public Distribution System (PDS)
  • Road and Bridge Construction

Reasons Why Government Undertakes Them

  1. To provide essential services to all citizens.
  2. To ensure social welfare.
  3. To promote balanced regional development.
  4. To provide services that may not be profitable for private companies.
  5. To protect national interests and public welfare.

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

Answer:

The public sector plays a vital role in the economic development of a nation.

Contributions of the Public Sector

  1. Creates infrastructure such as roads, railways and power projects.
  2. Provides education and healthcare services.
  3. Generates employment opportunities.
  4. Supports agriculture and industry.
  5. Promotes balanced regional development.
  6. Provides social security and welfare programmes.
  7. Ensures availability of essential goods and services.

Therefore, the public sector acts as an important instrument of national development.

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 often face exploitation and poor working conditions.

Protection Regarding Wages

  • Many workers receive wages below the minimum wage.
  • Payments are often irregular.

Example: Daily wage labourers may not receive fair wages for their work.

Protection Regarding Safety

  • Workplaces often lack safety equipment.
  • Workers face risk of accidents.

Example: Construction workers may work without helmets or safety belts.

Protection Regarding Health

  • Workers may be exposed to dust, chemicals and unhealthy environments.
  • Medical facilities are generally unavailable.

Example: Workers in small factories may suffer from respiratory diseases due to poor ventilation.

Therefore, strict implementation of labour laws is necessary to protect such workers.

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

Answer:

Sector Number of Workers Income Generated (Rs Million)
Organised Sector 4,00,000 32,000
Unorganised Sector 11,00,000 28,000
Total 15,00,000 60,000

Measures for Generating More Employment

  1. Promote small-scale and cottage industries.
  2. Encourage skill development programmes.
  3. Provide loans to small entrepreneurs.
  4. Expand transport and infrastructure facilities.
  5. Promote service-sector activities.
  6. Encourage investment in manufacturing industries.
  7. Support start-ups and self-employment opportunities.

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

Year Primary Secondary Tertiary
2001-02 13,23,000 10,40,000 19,31,000
2021-22 24,79,400 40,73,000 73,25,000

(i) Calculate the share of the three sectors.

For 2001-02

Total GVA = 13,23,000 + 10,40,000 + 19,31,000 = 42,94,000 crore

  • Primary Sector = (13,23,000 ÷ 42,94,000) × 100 ≈ 30.81%
  • Secondary Sector = (10,40,000 ÷ 42,94,000) × 100 ≈ 24.22%
  • Tertiary Sector = (19,31,000 ÷ 42,94,000) × 100 ≈ 44.97%

For 2021-22

Total GVA = 24,79,400 + 40,73,000 + 73,25,000 = 1,38,77,400 crore

  • Primary Sector = (24,79,400 ÷ 1,38,77,400) × 100 ≈ 17.87%
  • Secondary Sector = (40,73,000 ÷ 1,38,77,400) × 100 ≈ 29.35%
  • Tertiary Sector = (73,25,000 ÷ 1,38,77,400) × 100 ≈ 52.78%

(ii) Draw a Bar Diagram

Students should draw a bar graph using the above values with:

  • X-axis representing the three sectors.
  • Y-axis representing GVA in crores.
  • Separate bars for 2001-02 and 2021-22.

(iii) Conclusions from the Bar Graph

  1. The tertiary sector has become the largest contributor to India's economy.
  2. The secondary sector has shown significant growth.
  3. The share of the primary sector has declined over time.
  4. India's economy is increasingly service-oriented.
  5. Economic development has led to structural transformation from agriculture to industry and services.

Overall Hence The Indian economy has experienced a major shift towards the tertiary sector, which now contributes more than half of the country's Gross Value Added.