Class 10 Social Science Chapter 20 Sectors of the Indian Economy (Economics) Practice Paper 1

Class: X Subject: Social Science Session: 2025-26 Chapter: 02 - Sectors of the Indian Economy Time: 1½ Hours Max. Marks: 40

General Instructions:

1. All questions are compulsory.

2. This question paper contains 20 questions divided into five sections A, B, C, D and E.

3. Section A contains 10 MCQs of 1 mark each.

4. Section B contains 4 questions of 2 marks each.

5. Section C contains 3 questions of 3 marks each.

6. Section D contains 1 question of 5 marks.

7. Section E contains 2 Case Study Based questions of 4 marks each.

SECTION A - Multiple Choice Questions (1 mark each)

Q1. Which sector is also known as the agriculture and related sector?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Service sector

Q2. What does GDP stand for?
(a) Gross Domestic Product
(b) General Development Product
(c) Gross Departmental Produce
(d) Government Development Plan

Q3. Which of the following is an example of the tertiary sector?
(a) Cotton cultivation
(b) Manufacturing of cloth
(c) Banking services
(d) Mining of coal

Q4. In which year was MGNREGA implemented?
(a) 2003
(b) 2005
(c) 2007
(d) 2009

Q5. Which sector employs the maximum number of workers in India?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Quaternary sector

Q6. Disguised unemployment is mainly found in which sector?
(a) Industrial sector
(b) Service sector
(c) Agricultural sector
(d) Construction sector

Q7. Which of the following is NOT a characteristic of the organised sector?
(a) Fixed working hours
(b) Job security
(c) Low wages and irregular work
(d) Paid leave benefits

Q8. The production of sugarcane belongs to which sector?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Public sector

Q9. Which sector has shown the maximum growth in India in recent decades?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) All equally

Q10. Indian Railways is an example of which sector?
(a) Private sector
(b) Public sector
(c) Unorganised sector
(d) Primary sector

SECTION B - Short Answer Questions (2 marks each)

Q11. Explain the meaning of underemployment with an example.

Q12. Distinguish between final goods and intermediate goods.

Q13. Why is the tertiary sector becoming increasingly important in India?

Q14. What is the difference between organised and unorganised sectors?

SECTION C - Short Answer Questions (3 marks each)

Q15. Explain how the three sectors of the economy are interdependent on each other with suitable examples.

Q16. "While production in the tertiary sector rose by 14 times, employment rose only around five times." What does this indicate? Explain the implications of this trend.

Q17. Describe any three ways through which the government can create more employment opportunities in rural areas.

SECTION D - Long Answer Question (5 marks)

Q18. What is the difference between disguised unemployment and seasonal unemployment? Explain how the problem of disguised unemployment can be solved. Give three suggestions.

SECTION E - Case Study Based Questions (4 marks each)

Q19. Read the following case study and answer the questions that follow: Ravi is a farmer who grows wheat in Punjab. After harvesting, he sells his wheat to a flour mill nearby. The flour mill grinds the wheat and sells the flour to a biscuit factory at Rs 30 per kg. The biscuit factory uses the flour along with sugar and oil to make biscuit packets. Each packet is sold in the market for Rs 50. The factory produces 10,000 packets every month.
(a) Identify the primary, secondary, and tertiary sector activities mentioned in the case study. (2 marks)
(b) Why should only the value of biscuits be counted in GDP and not the wheat and flour separately? (2 marks)

Q20. Read the following case study and answer the questions that follow: Sumita works in a small garment factory in her village. She works for 10-12 hours a day but gets paid very little. There is no fixed salary, and she doesn't get any paid leaves or medical benefits. Her employer can ask her to leave at any time without notice. On the other hand, her sister Kavita works in a government office in the city. She has fixed working hours (9 AM to 5 PM), regular salary, provident fund, medical allowance, and job security.

(a) In which sector does Sumita work - organised or unorganised? Give two reasons. (2 marks)
(b) Why do workers in the unorganised sector need protection? Suggest two measures to protect them. (2 marks) DETAILED ANSWER KEY - PAPER 01

SECTION A - Answers to MCQs

Ans 1.
(a) Primary sector The primary sector includes activities that directly use natural resources like agriculture, dairy, fishing, and forestry. Ans 2.
(a) Gross Domestic Product GDP is the value of all final goods and services produced within a country during a particular year. Ans 3.
(c) Banking services Banking is a service that helps in the production process and falls under the tertiary sector. Ans 4.
(b) 2005 MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) was implemented in 2005.

Ans 5.
(a) Primary sector More than half of the workers in India are employed in the primary sector, mainly in agriculture. Ans 6.
(c) Agricultural sector Disguised unemployment is a situation where people appear to be working but their contribution to production is minimal. It is mainly found in agriculture. Ans 7.
(c) Low wages and irregular work Low wages and irregular work are characteristics of the unorganised sector, not the organised sector. Ans 8.
(a) Primary sector Sugarcane cultivation is an agricultural activity that directly uses natural resources, hence it belongs to the primary sector.

Ans 9.
(c) Tertiary sector The tertiary or service sector has shown the maximum growth in India in recent decades and has become the largest producing sector. Ans 10.
(b) Public sector Indian Railways is owned and operated by the government, making it a public sector enterprise.

SECTION B - Answers to Short Answer Questions

Ans 11. Underemployment Meaning: Underemployment is a situation where people are apparently working but all of them are made to work less than their potential. This kind of underemployment is hidden and is called disguised unemployment. Example: On a farm, five members of a family are working though only three are required to do the work. If two people are removed, production will not be affected. These two people appear to be employed but are actually not contributing to production. This is underemployment.

Ans 12. Final goods vs Intermediate goods Final Goods: Final goods are those goods that reach the final consumers and are not used for further production. Example: Biscuits sold to consumers. Intermediate Goods: Intermediate goods are those goods that are used up in producing final goods and services. Example: Wheat and flour used to make biscuits. Key Difference: The value of final goods already includes the value of intermediate goods, so counting both separately would mean counting the same value multiple times.

Ans 13. Growing importance of tertiary sector The tertiary sector is becoming increasingly important in India due to several reasons:

1. Basic services: Development requires more hospitals, schools, banks, transport, and communication services.

2. Support to other sectors: The growth of primary and secondary sectors leads to increased demand for services like transport, storage, and trade.

3. Rising incomes: As income levels rise, people demand more services like tourism, shopping, private hospitals, and professional training. Ans 14. Organised vs Unorganised sector Organised Sector: • Registered with the government and follows rules and regulations • Fixed working hours and regular employment • Workers get benefits like paid leave, provident fund, gratuity, medical benefits • Job security is ensured Unorganised Sector: • Not registered with the government • No fixed working hours, irregular employment • No benefits like paid leave or medical facilities • No job security, workers can be removed without notice • Low wages and often exploitative working conditions

SECTION C - Answers to Short Answer Questions

Ans 15. Interdependence of sectors The three sectors of the economy are highly interdependent on each other:

1. Secondary sector depends on Primary sector: Example: Sugar mills (secondary) need sugarcane from farmers (primary). If farmers refuse to sell sugarcane, the mill will have to shut down.

2. Primary sector depends on Secondary sector: Example: Farmers need tractors, pumpsets, fertilizers, and pesticides (all manufactured goods from secondary sector) for cultivation. If prices of these go up, farmers' costs increase and profits reduce.

3. All sectors depend on Tertiary sector: Example: Both farmers and industries need transport services to move their products to markets. If transporters go on strike, goods cannot reach their destinations, affecting both production and sales. This interdependence shows that all three sectors must work together for the smooth functioning of the economy. Ans 16. Employment vs Production in tertiary sector Indication: This data indicates that while the tertiary sector has grown significantly in terms of production, it has not created proportionate employment opportunities.

Implications:

1. Underemployment continues: Not enough jobs are being created in the tertiary sector despite its high growth. Many people who appear to be employed in services are actually underemployed, earning very little.

2. Quality of jobs: The tertiary sector employs different kinds of people - a small number in well- paid jobs (IT, banking, professional services) and a large number in poorly-paid, irregular jobs (street vendors, casual workers, domestic help).

3. Need for intervention: This trend shows that economic growth alone does not automatically create adequate employment. Government policies are needed to create more quality jobs and protect workers in the unorganised sector. Ans 17. Creating employment in rural areas The government can create more employment opportunities in rural areas through:

1. Investment in irrigation: • Constructing dams, canals, and wells to provide irrigation facilities • This allows farmers to grow multiple crops in a year • Creates employment in construction and agricultural activities • Example: If a farmer gets irrigation, she can grow wheat in rabi season, creating work for 50 more days for two workers per hectare

2. Development of infrastructure: • Building better rural roads for transport • Setting up storage facilities for crops • Providing cheap credit through banks • Creates jobs in transport, trade, and financial services

3. Promoting rural industries: • Setting up agro-processing industries like dal mills, cold storage • Establishing honey collection centers near forests • Promoting food processing units for vegetables, fruits • This provides employment in semi-rural areas without requiring people to migrate to cities

SECTION D - Answer to Long Answer Question

Ans 18. Types of unemployment and solutions Disguised Unemployment: • A situation where people appear to be working but all of them are made to work less than their potential • If some people are removed from work, production will not be affected • Also called hidden unemployment • Example: On a small farm, five family members work when only three are required. The other two are disguisedly unemployed. • Mainly found in agricultural sector Seasonal Unemployment: • Unemployment that occurs during certain seasons of the year • People don't have work for all months in a year • Example: Agricultural laborers have work during sowing and harvesting seasons but remain idle during the rest of the year • Also found in industries like tourism, ice factories

Solutions to Disguised Unemployment:

1. Diversification of agriculture: • Encouraging farmers to take up multiple cropping • Promoting allied activities like dairy, poultry, horticulture, fisheries • This provides round-the-year employment to rural people

2. Industrialization in rural areas: • Setting up small and cottage industries in villages • Establishing agro-based industries like food processing, dal mills • This absorbs excess labor from agriculture into other productive work

3. Investment in infrastructure: • Developing irrigation facilities to enable multiple cropping • Building rural roads, storage facilities, cold chains • Improving banking and credit facilities • This creates direct and indirect employment opportunities

4. Government programs: • MGNREGA provides 100 days of guaranteed employment • Focus on works that enhance future agricultural productivity • Helps reduce disguised unemployment by providing alternative work opportunities

SECTION E - Answers to Case Study Based Questions

Ans 19. Case study on sectors and GDP
(a) Identification of sectors: (2 marks) • Primary sector: Ravi growing wheat (agricultural activity using natural resources) • Secondary sector: Flour mill grinding wheat into flour, and biscuit factory manufacturing biscuits (both involve manufacturing and processing) • Tertiary sector: The selling and transportation of wheat, flour, and biscuits from one place to another (trade and commerce activities)
(b) Why only biscuits counted in GDP: (2 marks) • Only final goods (biscuits) should be counted in GDP calculation • Wheat and flour are intermediate goods used to make the final product (biscuits) • The value of biscuits (Rs 50 per packet) already includes the value of wheat and flour used to make them • If we count wheat, flour, and biscuits separately, we would be counting the same value multiple times (double counting) • This would give an incorrect and inflated figure of GDP • Therefore, only the value of final goods should be counted to avoid double counting and get accurate GDP Ans 20. Case study on organised and unorganised sectors
(a) Sumita's sector: (2 marks) Sumita works in the unorganised sector .

Two reasons:

1. No job security: Her employer can ask her to leave at any time without notice, showing there is no security of employment.

2. No benefits: She doesn't receive any benefits like fixed salary, paid leaves, or medical allowance that are characteristic of the organised sector. She works long hours (10-12 hours) but gets paid very little.
(b) Need for protection and measures: (2 marks) Why protection is needed: Workers in the unorganised sector need protection because they work in poor conditions, receive low and irregular wages, have no job security, and can be easily exploited by employers. They lack basic facilities and benefits that are available in the organised sector.

Two measures to protect them:

1. Minimum wage laws: The government should strictly enforce minimum wage laws to ensure workers get fair wages for their work. Regular inspections should be conducted to check compliance.

2. Social security schemes: Government should provide social security benefits like health insurance, pension schemes, and maternity benefits to unorganised sector workers. Programs like provident fund and gratuity should be extended to this sector with government support.