Sectors of Indian Economy Class 10 Economics Chapter 2

Class 10 Economics Chapter 2 is “Sectors of Indian Economy”. Get here the latest updated NCERT Solutions Sectors of Indian Economy Class 10 Economics Chapter 2 as per latest CBSE syllabus.

Class 10 Economics Chapter 2 : Sectors of Indian Economy

“Sectors of Indian Economy” is the second chapter in the economics book of Social Science Subject for Class 10. This chapter includes the End Exercise and Intext questions related to -SECTORS OF ECONOMIC ACTIVITIES, COMPARING THE THREE SECTORS, How to Create More Employment?, DIVISION OF SECTORS AS ORGANISED AND UNORGANISED, etc.

Sectors of Indian Economy Class 10 Economics Chapter 2 [ NCERT Solutions ]

Chapter Chapter 2 : Sectors of Indian Economy
SubjectEconomics – Social Science
Class 10
Study MaterialNCERT Solution ( Intext and End Exercise )
Number of QuestionsTotal 24 Questions
Text Book NameUnderstanding Economics Development
( NCERT Text Book in Economics for Class 10 )

End Exercise NCERT Solutions

Class 10 economics chapter 2 Question 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)
Answer : has not
Employment in the service sector has not increased to the same extent as production.

(ii) Workers in the ___________ sector do not produce goods. (tertiary / agricultural)
Answer : tertiary
Workers in the tertiary sector do not produce goods.

(iii) Most of the workers in the ______________sector enjoy job security. (organised / unorganised)
Answer : organised
Most of the workers in the organised sector enjoy job security.

(iv) A _____________ proportion of labourers in India are working in the unorganised sector. (large / small)
Answer : large
A large proportion of labourers in India are working in the unorganised sector.

(v) Cotton is a _________ product and cloth is a __________ product. [natural /manufactured]
Answer : natural , manufactured
Cotton is a natural product and cloth is a manufactured product.

(vi) The activities in primary, secondary and tertiary sectors are_____________ [independent / interdependent]
Answer : interdependent.
The activities in primary, secondary and tertiary sectors are interdependent.

Class 10 economics chapter 2 Question 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 : Option [ iii ] “ownership of enterprises” is correct.

(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 : Option [ i ] “primary” is correct.

(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 : Option [ ii ] “all final goods and services” is correct.

(d) In terms of GDP the share of tertiary sector in 2013-14 is between _ per cent.
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70
Answer : Option [ iii ] “50 to 60” is correct.

Class 10 economics chapter 2 Question 3 : Match the following:

Problems faced by farming sectorSome 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 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

Answer :

Problems faced by farming sectorSome possible measures
1. Unirrigated land(d) Construction of canals by the government
2. Low prices for crops(b) Cooperative marketing societies
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(c) Procurement of food grains by government

Class 10 economics chapter 2 Question 4 :
Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter
Answer :
Odd : potter
Reason : potter is the primary sector.

(ii) Teacher, doctor, vegetable vendor, lawyer
Answer :
Odd : vegetable vendor
Reason : Unorganised Sector

(iii) Postman, cobbler, soldier, police constable
Answer :
Odd : Cobbler
Reason : Unorganised sector

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Answer :
Odd : Air India, Jet Airways
Reason : Private Sector . Note Air India is also now a private sector since January 2022.

Class 10 economics chapter 2 Question 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?

Place of workNature of employmentPercentage of working people
In offices and factories registered with the governmentOrganised 15
Own shops, office, clinics in marketplaces with formal license15
People working on the street, construction workers, domestic workers20
Working in small workshops
usually not registered with the
government

Answer :
Percentage of workers in unorganised sector = 70%
= 50 +20 = 70%

Place of workNature of employmentPercentage of working people
In offices and factories registered with the governmentOrganised 15
Own shops, office, clinics in marketplaces with formal licenseOrganised15
People working on the street, construction workers, domestic workersUnorganised20
Working in small workshops
usually not registered with the
government
Unorganised50

Class 10 economics chapter 2 Question 6 :
Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer :
Yes, it is very useful to classify the economic activities into primary, secondary and tertiary sectors.
It has following reasons:-
1. We can find out how many workers are working in different sectors.
2. We can find out the share of each sector in the GDP (Gross domestic Product).
We can find out which sector is lagging behind.
We can also find out the interdependence of each sector.

Class 10 economics chapter 2 Question 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 :
We should focus on employment and GDP of different sectors because:-
1. Employment : Employment has been the focus because it gives solution many employment related problems. It helps in reducing poverty.
2. Gros Domestic Product (GDP) : The GDP helps us to find out the share of each sector in the national income.

Class 10 economics chapter 2 Question 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 :

Students have to do this question won their own by searching the work of adults around them. Note down the work of adults near you and then classify them as tertiary , primary, secondary work, etc

Class 10 economics chapter 2 Question 9 :
How is the tertiary sector different from other sectors? Illustrate with a few examples
Answer :

Tertiary sector is different from other sectors (primary and secondary) .
1. Tertiary sector includes the activities that help in the development of the primary and secondary sectors.
2. These activities, by themselves, do not produce a good but they are an aid or a support for the production process. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops.

3. At times, it may be necessary to store these in godowns.
4. We also may need to talk to others over telephone or send letters (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communication, banking, trade are some examples of tertiary activities.
5. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

Class 10 economics chapter 2 Question 10 :
What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas
Answer :

A situation in which more workers are working in an activity than the required number. In such situation the people who were engaged in the activity appear to be employed but actually they are not fully employed . If extra workers are removed then the production will not be affected . Such a situation is known as disguised unemployment.

Example from Rural area : Suppose 10 workers are required to cultivate one hectare of land but 15 workers are working on this piece of land, then here 5 workers are in disguised unemployment because i extra 5 workers are removed and put in some other activity, the output of the piece of land will be same as it was earlier.

Example from Urban areas : In urban areas, there are 1000’s of workers who are employed as carpenters , painters, masons , etc. They don’t get work everyday . Only a few are there who are getting regular work. Similarly there are vendors who spend the whole day but earn very little.

Class 10 economics chapter 2 Question 11 :
Distinguish between open unemployment and disguised unemployment.
Answer :

Open unemploymentDisguised unemployment
Under this kind of unemployment the worker is ready to worker but he is unable to find work on going wages.A situation in which more workers are working in an activity then the required number . In this situation people who are engaged in the activity appear to be employed but they are not fully employed.
It is clearly visibleIn this , if extra workers are removed then the production will not be affected.
It can occur in any sectorIt is mainly found in agriculture and also upto some extent in tertiary sector

Class 10 economics chapter 2 Question 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.
Answer :

The statement is not true as tertiary sector or service sector is contributing 52% in GDP. It has risen 14 times from 1973 to 2010-11 but drawback is that employment in this sector has risen only two times. On the other hand secondary and tertiary sector produce 75% of the products whereas they employ less than half of the people, remaining more than half works in primary sector.

Tertiary sector is also important because it provides basic service like as education, health , banking, defence, etc. The development of the other two sector completely depends upon the services provided by this sector.

Class 10 economics chapter 2 Question 13 :
Service sector in India employs two different kinds of people. Who are these?
Answer :

Service sector in India employs many different kinds of people.
1. At one end there are a limited number of services that employ highly skilled and educated workers.
2. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them

Class 10 economics chapter 2 Question 14 :
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer :

1. The unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
2. There are rules and regulations but these are not followed. Jobs here are low-paid and often not regular.

3. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure.
4. People can be asked to leave without any reason.
5. When there is less work, such as during some seasons, some people may be asked to leave. A lot also depends on the whims of the employer

Class 10 economics chapter 2 Question 15 :
How are the activities in the economy classified on the basis of employment conditions?
Answer :

On the basis of employment conditions the activities of the economy are classified into two parts :-
1. Organised Sector activities
2 Unorganised Sector activities.

Class 10 economics chapter 2 Question 16 :
Compare the employment conditions prevailing in the organised and unorganised sectors
Answer :

Comparison of employment conditions in the organised and unorganised sectors.
A) Organised Sector :
1. Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
2. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc

3. It is called organised because it has some formal processes and procedures. Some of these people may not be employed by anyone but may work on their own but they too have to register themselves with the government and follow the rules and regulations

4. Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer. They also get several other benefits from the employers
5. They get paid leave, payment during holidays, provident fund, gratuity etc. They are supposed to get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment. When they retire, these workers get pensions as well.

B) Unorganised Sector :
1. The unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
2. There are rules and regulations but these are not followed. Jobs here are low-paid and often not regular.
3. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure.
4. People can be asked to leave without any reason.
5. When there is less work, such as during some seasons, some people may be asked to leave. A lot also depends on the whims of the employer

Class 10 economics chapter 2 Question 17 :
Explain the objective of implementing the NREGA 2005.
Answer :

The objective of implementing NREGA 2005 was to provide employment to unemployed persons in rural areas in a short period of time.
Its main features are as under :
1. It is the way to implement the law “Right to work”
2. In beginning, it was started in 200 districts of India.
3. Under this act, all those who are able to work and are in need of work , have been guaranteed 100 days of employment in a year by the government.

4. If government fails to do so it will give them employment allowances to the people.
5. Under this act preference is give to the work that would help in future to increase the production from land.

Class 10 economics chapter 2 Question 18 :
Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer :
Student have to do this question own their own by searching the examples of private sector and public sector in your area or locality. Write the answer in your own words.
Students may take the private sector as private schools, companies in their area and public sector like govt schools, water supply system ,etc . Write the answer in your own words.

Class 10 economics chapter 2 Question 19 :
Discuss and fill the following table giving one example each from your area.

Well managed organisationBadly managed organisation
Public sector
Private sector

Answer : Student have to do this question own their own by searching the examples of well managed organisation and badly managed organisation in your area or locality. Write the answer in your own words.

Class 10 economics chapter 2 Question 20 :
Give a few examples of public sector activities and explain why the government has taken them up
Answer :

Our society needs several things as a whole but it is not possible for the private sector to provide all these facilities to people at reasonable costs. It is because some these activities are taken by the government. In these activities some need large sums of money to spend, which is beyond the capacity of private sector. Also, collecting money from thousands of people who use these facilities is not easy for private sector.

Even if they do provide these things they would change a high rate for their use. Construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, etc are the examples of such heavy spending activities that government has to undertake and ensure the people that these facilities are available for everyone.

Class 10 economics chapter 2 Question 21 :
Explain how public sector contributes to the economic development of a nation.
Answer :

Contribution of public sector in the development of a nation is explained below:
1. Development of Infrastructure : Industrial development of a country depends on the development of Infra-structure in a country. Infra structure development requires huge capital investment which can’t be done by private sector. More over infra-structure projects don’t promise profits so they are undertaken by the public sector.

2. Development of backward areas : The private sector companies will not be interested in setting up their projects in backward areas of the country . hence it is the public sector who takes this responsibility and setup industries in these areas for development.

3. Basic Facilities : It is the responsibility of the government to provide basic facilities such as health services, education, security, etc. Quality education, healthy population and good environment help in the overall development of the nation.

4. Other problems : Problems like malnourishment , high infant mortality rate, unsafe drinking water, lack of housing facilities, etc. require special attention. These problems can be solved only by the government.

Class 10 economics chapter 2 Question 22 :
The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.

Answer :
1. Wages : In an unorganised sector, the employees are paid low wages. They are not paid as per minimum wages act. They are also not paid any allowance for working beyond duty hours. They don’t get regular employment and other benefits like paid leave, payment during holidays, provident fund, gratuity ,etc.

2. Safety and Health : The unorganised sector does not provide any health or medical facilities . The workers in the sector have to work in unhealthy conditions to earn a little. For example some labourers work in chemical factories where no safety measures are ensured. These chemicals are harmful for their health. There are many other problems faced by them such as unsafe drinking water, uncleaned canteen facilities, restroom ,etc.

Class 10 economics chapter 2 Question 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 :

The date is presented as table given below :

Sector Number of workersIncome ( in million Rs)
Organised40000032
Unorganised110000028
Total150000060

Ways for the generating more employment in the city are as follows :
1. Improvement in the education system to provide skill based education to the youth.
2. Improvement in rules and policies for industrial development.

Class 10 economics chapter 2 Question 24 :
The following table gives the GDP in Rupees (Crores) by the three sectors:

YearPrimarySecondaryTertiary
20005200048500133500
201380050010740003868000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
Answer :
The share of the three sector in GDP for 2000 and 2013 can be calculated as under :
In the year 2000,
Primary sector share in GDP = 52000/(52000 + 48500 + 133500 ) * 100 = 22.22 %
Secondary Sector share in GDP = 48500/ ( 52000 + 48500 + 133500 ) * 100 = 20.72 %
Tertiary Sector share in GDP = 13350/ ( 52000 + 48500 + 133500 ) * 100 = 57.05 %

In the year 2013,
Primary sector share in GDP = 800500/(800500 + 1074000 + 3868000 ) * 100 = 13.95 %
Secondary Sector share in GDP = 1074000/ (800500 + 1074000 + 3868000 ) * 100 = 18.70 %
Tertiary Sector share in GDP = 3868000/ ( 800500 + 1074000 + 3868000 ) * 100 = 67.35 %

(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 :
In 2000, Tertiary sector was contributing more than Primary and secondary sector in GDP. In 2013 also, tertiary sector became the most dominant sector and contributed about 67.35 % in GDP.