CBSE Class 10 Economics Chapter 2 Sectors of the Indian Economy Extra Questions and Answers is available here. Students can learn and download PDF of these questions for free. These extra questions and answers are prepared by our expert teachers as per the latest NCERT textbook and guidelines. Learning these questions will help you to score excellent marks in the board exams.

Sectors of the Indian Economy Class 10 Extra Questions Economics Chapter 2

Very Short Answer Type Questions (1 Mark)

1. What are economic activities?
Answer: The activities which contribute to the flow of goods and services in an economy.

2. There are many activities that are undertaken by directly using natural resources. What are these activities known as?
Answer: Primary activities.

3. Give any two examples of primary activities.
Answer: (i) Animal rearing (ii) Lumbering

4. ‘Dairy is a primary activity’. Give reason.
Answer: In case of dairy we are dependent on the biological process of the animals and availability of fodder. The product i.e. milk is also a natural product.

5. By what other name the primary sector is known as?
Answer: Agriculture and related sector. ‘

6. What is secondary sector?
Answer: The secondary sector includes activities in which natural products are changed into other forms manually or through machines.

7. Give two examples of secondary activities.
Answer: (i) Manufacturing of car (ii) Manufacturing of chair.

8. What is tertiary sector?
Answer: The sector which provide support service to both primary and secondary sectors. For example banking, trade communication etc.

9. Why tertiary sector is also termed as service sector?
Answer: Tertiary sector is termed as service sector because tertiary sector provide support service to primary and secondary sectors.

10. What is GDP? [CBSE 2014]
Answer: It is the value of all final goods and services produced within a country during a particular year.

11. Which organisation in India undertakes the task of measuring GDP?
Answer: Central Government Ministry.

12. What are final goods?
Answer: Final goods are the goods which are ready for use. For example a pen.

13. What are intermediate goods?
Answer: These are the goods which are used up during the production process.

14. ‘While calculated Gross Domestic product the value of only final goods should be included’. Give reason.
Answer: Because the final goods already includes the value of all intermediate goods.

15. Which sector has shown the highest growth rate?
Answer: Tertiary sector.

16. Which sector is the largest employer?
Answer: Primary Sector.

17. What is Right to Work?
Answer: Under this Right all those who are ready to work at prevailing wages are given work by the government.

18. What is organised sector?
Answer: It is a sector which covers those enterprises or place of work where the terms of employment are regular and therefore people have regular work.

19. What is unorganised sector?
Answer: Any sector or industrial unit which is largely outside the control of the government.

20. There is a need for protection and support of the workers in the unorganised sector. Given two seasons.
Answer: (i) Workers of unorganised sector are not paid fair wages.
(ii) The working conditions are very poor.

21. What is a public sector?
Answer: Any sector which is controlled and managed by the government is known as public sector for e.g. Indian Railway.

22. On what basis, the sectors are classified into public and private sector ? [CBSE Sept. 2010, 2012, 14]
Answer: Ownership of enterprises

23. In which year the National Rural Employment Guarantee Act was implemented? [CBSE Sept. 2010]
Answer: 2005

24. Sahara Airlines and B.S.E.S. are examples of: [CBSE Sept. 2011]
Answer: Private Sector

25. What is the main motive of Private sector enterprises ? [CBSE Sept. 2011, 2012]
Answer: Profit making

26.What will happen if the government fails to provide 100 days employment under NREGA? [CBSE Sept. 2012}
Answer: Unemployment allowance will be given.

Short Answer Type Questions (3 Marks)

1. What is under employment? Explain with an example. [CBSE Sept. 2013]

Answer: (i) It is situation under which people are apparently working but all of them are made to work less than their potential.
(ii) For example to cultivate a field only two workers are required but the whole family of five people is working as they have nowhere else to go for work.
(iii) This type of unemployment is also known as disguised unemployment.

2. What are secondary activities? Explain with examples. [CBSE Sept. 2010] 

Answer: The occupations which produce finished goods by using the products of primary activities as raw materials are included in secondary activity. Manufacturing of cloth from cotton, sugar from sugarcane and steel from iron ore are important examples of secondary activities.

All these are secondary activities because the final product is to be produced not by nature but has to be made by men and therefore, some process of manufacturing is essential. Let us take an example of cloth. Though the primary product, i.e., cotton is produced by nature, but it cannot be used directly by us in . this form. So to convert it into usable form some process of manufacturing is essential. This can be done in a factory or at home with simple tools.

3. What are tertiary activities? Explain with examples. [CBSE Sept. 2010]

Answer: Tertiary activity consists of all service occupations. Transport, communication, trade, health, education and administration are important examples of tertiary activities. These tertiary activities help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good, but they are an aid or a support for the production process. So these are also known as support services.

4. What are primary activities? Explain with examples. [CBSE Sept. 2010] 

Answer: Primary activity includes those occupations which are closely related to man’s natural environment. Gathering, hunting, fishing, lumbering, animal rearing, farming and mining are some of the important examples of primary activities. Let us understand the concept with the help of an example-Animal rearing or dairy is a primary activity. In this activity, farmers are dependent on the biological process of the animals, and the availability of fodder, etc. The product, milk, is also a natural product. The most important feature of primary sector is that it forms the base for all other activities.

5. What is GDP? Who is responsible for collecting data for the GDP in India? [CBSE Comp. (O) 2008,14]

Answer: GDP is the value of goods and services produced within a country during a given time period.
In India, the mammoth task of measuring the GDP is undertaken by a central government ministry. This ministry, with the help of various government departments of all the Indian States and Union Territories, collects information relating to the total volume of goods and services and their prices, and then estimates the GDP.

6. What is disguised unemployment? Explain. [CBSE 2010 (D), Sept. 2010]
Or
How far is it correct to say that disguised unemployment can also be called underemployment? Explain. [CBSE 2012]

Answer: (i) It is a situation in which more workers are working in an activity than required. The people who are actually engaged in such an activity appear to be employed, but are not fully employed.
(ii) For example, if for the cultivation of one hectare land, 10 workers are required, but instead of 10 workers, 15 workers are working. In this case, 5 workers are disguised unemployed. In such cases, even if the surplus workers are removed, the production will not suffer. ,
(iii) This type of unemployment is basically found in agriculture.
(iv) This type of unemployment can also be called underemployment because workers perform below their productivity level.

7. What is an organised sector ? Explain [CBSE 2009 (O)]

Answer: (i) An organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
(ii) 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 Act, etc.
(iii) They are called organised because they have some processes and procedures.

8. What is an unorganised sector? Explain.

Answer: (i) An Unorganised Sector is a sector which is not registered by the government.
(ii) The unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
(iii) There are rules and regulations, but these are not followed.

9.Who are the people that work in an unorganised sector ? Mention any two social values which you have learnt from the working conditions of unorganised sector.

Answer: (i) In the rural areas, the unorganised sector mostly comprises the landless agricultural labourers, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).
(ii) In the urban areas, the unorganised sector mainly comprises workers in small-scale industry, casual workers in construction, trade and transport, etc. It also consists of those who work as street vendors, head load workers, garment makers, rag pickers, etc.
(iii) Majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganised sector.
Social Values :
(i) Most of the people working in unorganised sector belong to backward communities.
(ii) These workers face social discrimination.

10. What are the objectives of NREGA 2005? [CBSE Sept. 2010, 2011, 2012]

Answer:(i) This scheme targets the Scheduled Castes, Scheduled Tribes and the poor women, who suffer from poverty.
(ii) To provide livelihood to the people below the poverty line, this scheme guarantees 100 days of wage employment in a year to every rural household in the country.
(iii) Under this scheme, the Gram Panchayat after proper verification will register households, and issue job cards to registered households. The job card is the legal document that entitles a person to ask for work under the Act and to get work within 15 days of the demand for work, failing which an unemployment allowance would be payable.

11. What are the two sectors of economic activities on the basis of the ownership of resources? Explain.

Answer: The public and the private sector.
(a) Public Sector : It is the sector which is controlled, managed and owned by the government. For example, the Indian Railways.
(b) Private Sector : A private sector is owned, controlled and managed by an individual or by a group of individuals. For example, the Reliance Industries Ltd.

12. Describe any four points of importance of primary sector in the Indian economy. [CBSE 2008 Comp. (D)]

Answer: (i) Primary sector contributes more than 20% to the GDP of India.
(ii) Its employment share is more than 55%.
(iii) It is the most labouring sector of Indian economy.
(iv) It covers agriculture, dairy, fishing, forestry which all contribute to the Indian economy.

13. Enumerate the various causes of rural unemployment in India. [CBSE 2013]

Answer: (i) Lack of skill and education : The most important factor responsible for rural unemployment is lack of education and skill.
(ii) Domination of primary sector : Most of the people of rural areas are involved in primary activities. The possibility of unemployment in primary sector is more.
(iii) Lack of Industrialization : Even after more than 60 years of independence more than 80% of the people are dependent on agriculture for their livelihood. Chances of disguised unemployment are very high in agriculture.

14. How can employment opportunities be generated in the tourism and information and technology centres? [CBSE 2013]

Answer: (i) Government should encourage tourism by providing more facilities to the tourists.
(ii) Medical treatment in India is very cheap as compared to developed nations.
(iii) Vocational training should be merged in main-stream education pattern.
(iv) Research and development work should be promoted.
(v) Government should set up more technology parks.

Long Answer Type Questions (5 Marks)

1. ‘While estimating the national income, only the value of the final goods and services is used.’ Explain with the help of an example.

Answer: While estimating the performance of a sector, only the value of final goods and services is used. This is for avoiding double counting. “The counting of the only the value of final goods and services is used. This is for avoiding double counting. “The counting of the value of a product more than once is called as double counting.” This leads to the overestimation of the value of goods and services produced. Let us understand the concept with the help of an example- A farmer produces one ton of wheat, and sells it for X 100 to a flour mill. As far as the farmer is concerned, the sale of wheat is a final sale for him.

But the purchase of wheat by the flour mill is an intermediate goods. He converts the wheat into flour and sells it to a baker for X 150. The flour mill treats the flour as a final product, but for baker it is an intermediate goods. The baker sells the bread to the shopkeeper for X 200, and the shopkeeper to the consumer for X 250.

Value of output = Farmer (X 100) + Flour mill (X 150) + Baker (X 200) + Shopkeeper {X 250) = X 700 .
So while calculating the national income only the value of the final output; i.e., X 250 should be included not X 700.

2. Why is the tertiary sector becoming so important in India? Give at least four reasons. 
[CBSE 2008, 2009 (D) Sept. 2011, 2012]
Or
Why is tertiary sector growing so rapidly in India ? Explain it with four reasons. [CBSE Sept. 2011, 14] 

Answer: (i) Basic services : In any country, several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc., are required. These can be considered as basic services. In a developing country, the government has to take the responsibility for the provision of these services.
As more and more people are being employed to provide the basic services to the people, the share of the tertiary sector in the Gross Domestic Product, the GDR is increasing.

(ii) Development of means of transport and communication : The development of agriculture and industry leads to the development of services such as transport, communication, trade, etc. All these are under the tertiary sector.

(iii) More income more services : The per capita income in our country is rising. As the income level rises, people demand more services like tourism, shopping centres, schools, professional training centres, banks, etc.

(iv) New services : With modernisation and globalisation, some new services based on information and communication technology have become important and essential. The production of these services has been rising rapidly.

3. Explain any four points of importance of Secondary sector in the Indian economy. [CBSE Comp. 2008 (D)]

Answer: (i) The Secondary sector contributes more than 20% to the GDP of India.
(ii) It provides employment to the people.
(ili) It provides goods to the people like cloth, sugarcane, iron and steel.
(iv) The Secondary sector promotes the development of the Primary and the Tertiary sectors

4. Suggest some ways which can be helpful in creating employment in rural areas. [CBSE Sept. 2010, 2011]
Or
What steps should be taken to create more employment? Expain. [CBSE Sept. 2010, 2011]
How to create more employment in rural areas? Explain with examples. [CBSE Sept. 2011,2012]

Answer: (i) Diversification of agriculture: More than 60 per cent of our workers are employed in agriculture. But ‘our farmers are producing only limited crops. There is need to diversify agriculture. Farmers should be encouraged to adopt pisciculture, horticulture, animal rearing, etc., along with cultivation of crops.

(ii) Cheap credit : Most of the farmers depend on informal sources of credit, i.e., moneylenders, relatives, traders, etc., who charge a very high rate of interest. Government should encourage the commercial banks to provide loans to the farmers at cheaper rates.

(iii) Provision of basic facilities : Our rural areas lack the basic facilities like roads, transportation, banking, warehouses, markets, etc. The government should invest some money in these sectors so that the Indian villages can be linked to other markets. This activity can provide productive . employment to not just farmers, but also to others such as those in services like transport or trade.

(iv) Promotion of local industries and other activities : Another way to tackle this problem is to identify, promote and locate industries, especially the cottage and small- scale industries in semi-rural areas, where a large number of people may be employed. It also includes setting up a flour or rice mill to procure and process these and sell in the cities. In villages, near forest areas, honey collection centres can be started where farmers can come and sell wild honey.

5. What are the advantages of working in an organised sector? [CBSE Sept. 2011] 
Or
What is an organised sector? Describe its working conditions. [CBSE 2009 (D)] 

Answer: An organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. 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, the Minimum Wages Act, the Payment of Gratuity Act, Shops Act, etc.

(i) Workers in the organised sector enjoy security of employment.
(ii) They work only for a fixed number of hours. If they work more, they have to be paid overtime by the employer.
(iii) They also get several other benefits from the employers like paid leave, payment during holidays, provident fund, gratuity, etc.
(iv) They also get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment.

6. Explain the role of government in the public sector. [CBSE Sept. 2013]

Answer: (i) Development of infrastructure : The pace of industrial development cannot be accelerated without the establishment of infrastructure. Its development requires huge capital investment, which cannot be mobilised by the private sector. Moreover, these projects do not promise high profits.

(ii) Development of backward areas: The goal of achieving a reduction in economic inequality between regions becomes easy to reach, if industries are set up in the backward areas. But the profit seeking private industrialists often are not enthusiastic enough to set up industry in the backward regions. The government, therefore, finds it necessary to start industrial production in these areas on its own.

(iii) Basic facilities : There are a large number of activities which are the primary responsibility of the government. The government must spend on these. Providing health, quality education, particularly elementary education, is the duty of the government. India’s size of illiterate population is one of the largest in the world.

(iv) Other problems : There are many other problems like malnourishment, high infant mortality rate, unsafe drinking water, lack of housing facilities, etc., which need special attention. These problems can be solved only with the help of the government.

7. Do you agree that agriculture is an activity of the unorganised sector in India. Give any four points. [CBSE Sept. 2010, 2012] 

Answer: Yes. Agriculture in India is an activity of the unorganised sector.
(i) Most of the workers working in agriculture are ill paid.
(ii) Agriculture sector faces the problem of under employment.
(iii) Most of the workers working in agriculture are employed only during harvesting and sowing season.
(iv) Most of the farmers are dependent on moneylenders and relatives for their loan requirements.

8. How can workers in the unorganised sector be protected ? Explain. [CBSE Sept. 2010, 2011] 

Answer: (i) Government can fix the minimum wages rate and working hours.
(ii) Government can provide cheap loans to the self employed people.
(iii) Government can provide cheap and affordable basic services like education, health, food to these workers.
(iv) Government can frame new laws which can provide provision for overtime, paid leave, leave due to sickness, etc.

9. Write two groups of people working in unorganised sector who are in need of protection. How can the government protect them ? [CBSE Sept. 2010] 

Answer: (i) In the rural areas, the unorganised sector mostly comprises the landless agricultural labourers, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).
(ii) In the urban areas, the unorganised sector mainly comprises workers in small-scale industry, casual workers in construction, trade and transport, etc. It also consists of those who work as street vendors, head load workers, garment makers, rag pickers, etc.
Role of Government :
(i) Government can provide them cheap loans.
(ii) Government can provide basic facilities like education, food, health at cheap and affordable rate.

10. Explain how a shift has taken between sectors in developed countries. [CBSE Sept. 2011] 

Answer: (i) At initial stages of development, it was the primary sector which dominated. Most of the people were employed in the primary sector only.
(ii) With the introduction of new methods of farming and manufacturing people started working in other activities i.e. manufacturing. So secondary sector gradually became the most important in total production and employment.
(iii) In the past 100 years the service sector has become the most important in terms of total production and employment.
(iv) The domination of service sector is due to globalisation of the world economy.

Value Based Questions

1. What are the disadvantages of working in an unorganised sector? Suggest any two ways to protect the workers working in an unorganised sector.
Or
Why is working in an unorganized sector not considered secure? [CBSE 2013]

Answer: (i) The unorganised sector is characterised by small and scattered units which are largely outside the -control of the government.
(ii) Workers working in an unorganised sector get less wages.
(iii) There is a no provision for overtime, paid leave, holidays, leave due to sickness, etc.
(iv) Employment is subject to high degree of insecurity.
(v) A large number of people doing small jobs such as selling on the street or doing repair work comes under the unorganised sector.
Suggestions :
(i) Expanding the base of organised sector.
(ii) Spread of Education.

2. Explain the role of public sector. Suggest any two ways to improve the working of public sector or government. [CBSE Sept. 2012]
OR
Why is public sector required to provide certain things at reasonable cost? [CBSE 2013]
Or
Identify any five activities where the government must spend for the welfare of the people and why. [CBSE 2012]
Or
How far is it correct to say that several services which cannot be provided by private sector, can be provided by the public sector? Explain. [CBSE 2012] 

Answer: (i) There are several things needed by the society as a whole like sanitation system, safe drinking water, education, etc. which the private sector will not provide at reasonable cost.

(ii) There are some activities, which the government has to support. The private sector may not continue their production or business unless government encourages it. For example, selling electricity at the cost of generation may push up the costs of production of industries. Many units, especially small-scale units, might have to shut down. Government here steps in by producing and supplying electricity at rates which these industries can afford. Government has to bear part of the cost.

(iii) Similarly, the government in India buys wheat and rice from farmers at a ‘fair price.’ This it stores in its godowns and sells at a lower price to consumers through ration shops. The government has to bear some of the cost. In this way, the government supports both farmers and consumers.

(iv) Similarly, we know that nearly half of India’s children are malnourished and a quarter of them are critically ill. The infant mortality rate of Odisha (87) or Madhya Pradesh (85) is higher than that of the poorest regions of the world such as the African countries. Government also needs to pay attention to aspects of human development such as availability of safe drinking water, housing facilities for the poor and food and nutrition. It is also the duty of the government to take care of the poorest and most ignored regions of the country through increased spending in such areas. Improvement of working of government :
(i) Citizens should actively participate in the election procedure.
(ii) People should use RTI whenever not satisfied with any government department.

3. Explain the interdependence of all the three economic sectors giving examples from transportation system. [CBSE 2013]
Or
How are the three sectors of economy interdependent? Explain with five suitable examples. [CBSE 2012]
Or
‘Economic activities, though grouped into three different categories, are highly interdependent.’ Discuss. [CBSE 2010]

Answer: (i) When we exploit natural resources, it is an activity of the primary sector e.g., agriculture, mining, forestry.
(ii) The natural resources are changed into other forms through the process of manufacturing, i.e., manufacturing sector uses natural products as its raw materials.
(iii) All services, that enable us to pursue primary and secondary activities are listed as tertiary activities. For example, transport, education, medical services.
(iv) Primary and secondary activities cannot produce a good unless they are aided by the tertiary sector.
(v) Service sector does not produce a good. For example, the internet cafe, ATM booth, call centers are the services required for manufacturing industries etc. Railways, roads are needed to assist agricultural production.

4. Why is agriculture an activity of unorganised sector in India ? Explain. [CBSE 2012]
Or
Agriculture is an activity of unorganized sector in India. Do you agree with this statement? Justify your answer with suitable examples. [CBSE 2012]

Answer: (i) There is no fixed number of working hours. The labourers have to work normally for 10-12 hours without paid overtime.
(ii) Agricultural labourers get no other allowances apart from daily wages.
(iii) Agricultural labourers have no job security.
(iv) Government rules and regulations to protect the labourers are not followed.
(v) They are often exploited and not paid a fair wage.

5. “Income and employment will increase if the farmers are provided irrigation and marketing facilities”. Justify the statement. ‘

Answer: (i) If a new dam is constructed and canals are
dug to irrigate farms. This could lead to a lot of employment generation within the agricultural sector itself reducing the problem of underemployment.
(ii) With assured means of irrigation production will increase.
(iii) Farmers would like to sell the surplus in the market.
(iv) For this they may be required to transport their products to a nearby town. If the government invests some money in transportation and storage of crops, or makes for better rural roads this activity can provide productive employment to not just farmers but also others such as those in services like transport or trade.