Class 10 Social Science Chapter 20 Sectors of the Indian Economy (Economics) Practice Paper 3

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 of the following activities does NOT belong to the primary sector?
(a) Dairy farming
(b) Fishing
(c) Weaving cloth
(d) Mining

Q2. The criterion used to classify activities into primary, secondary, and tertiary is:
(a) Nature of employment
(b) Nature of activity
(c) Ownership of enterprises
(d) Number of workers

Q3. Which ministry measures GDP in India?
(a) Ministry of Finance
(b) Ministry of Commerce
(c) Central government ministry with help of state departments
(d) Reserve Bank of India

Q4. MGNREGA is also called:
(a) Right to Food
(b) Right to Work
(c) Right to Education
(d) Right to Property

Q5. The secondary sector is also called:
(a) Service sector
(b) Agricultural sector
(c) Industrial sector
(d) Public sector

Q6. Which of the following is an example of the organised sector?
(a) A daily wage laborer
(b) A street vendor
(c) A government school teacher
(d) A domestic worker

Q7. In which districts is MGNREGA implemented?
(a) All urban districts
(b) About 625 districts of India
(c) Only backward districts
(d) Only in one state

Q8. Transportation of goods by trucks belongs to which sector?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Industrial sector

Q9. Which sector was the most important in India at initial stages of development?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) All equally

Q10. Workers in the organised sector are expected to work for:
(a) Unlimited hours
(b) Fixed number of hours
(c) As per employer's wish
(d) 12 hours minimum

SECTION B - Short Answer Questions (2 marks each)

Q11. Why are only final goods counted in GDP? Explain with an example.

Q12. Give two examples each of activities belonging to primary, secondary, and tertiary sectors.

Q13. Why is the tertiary sector also called the service sector?

Q14. What is the historical pattern of change observed in developed countries regarding sectors?

SECTION C - Short Answer Questions (3 marks each)

Q15. "More than half of the workers in India are working in the primary sector, mainly in agriculture, producing only about one-sixth of the GDP." What does this data indicate? Explain.

Q16. Explain the role of government in providing public sector services. Why can't the private sector provide all these services?

Q17. Compare the employment conditions of workers in the organised and unorganised sectors. Why do we need to protect workers in the unorganised sector?

SECTION D - Long Answer Question (5 marks)

Q18. What is meant by underemployment or disguised unemployment? Explain with two examples - one from rural areas and one from urban areas. How can this problem be solved? Give at least three suggestions.

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

Q19. Read the following case study and answer the questions that follow: The government decided to construct a new dam in a rural region to provide irrigation to farmers. This project created direct employment for 5,000 construction workers for two years. Once completed, the dam provided irrigation to 50,000 hectares of land. Farmers who earlier grew only one crop could now grow two crops a year. They needed more labor during sowing and harvesting. Local transport business increased as farmers needed to transport more produce to nearby markets. Small traders opened shops to sell seeds, fertilizers, and tools. A few food processing units were also set up to process vegetables grown by farmers.

(a) How did the dam create employment in different sectors? Identify and explain. (2 marks)
(b) How are activities in primary, secondary, and tertiary sectors interdependent in this case? (2 marks)

Q20. Read the following case study and answer the questions that follow: Ramesh works in a big factory that manufactures cars. He works from 9 AM to 5 PM, gets a monthly salary of Rs 25,000, has medical insurance, and gets 15 days of paid leave every year. He also gets provident fund and gratuity benefits. On the other hand, Karim works in a small workshop making car parts. He works 10-12 hours a day, gets paid Rs 400 per day when there is work, has no leave benefits, no medical insurance, and can be asked to leave anytime.

(a) Compare the working conditions of Ramesh and Karim. In which sectors do they work? (2 marks)
(b) Why is it important to create more jobs in the organised sector? (2 marks) DETAILED ANSWER KEY - PAPER 03

SECTION A - Answers to MCQs

Ans 1.
(c) Weaving cloth Weaving cloth is a manufacturing activity that belongs to the secondary sector. All other options directly use natural resources and belong to the primary sector. Ans 2.
(b) Nature of activity The criterion used to classify economic activities into primary, secondary, and tertiary sectors is the nature of the activity - whether it directly uses natural resources, involves manufacturing, or provides services. Ans 3.
(c) Central government ministry with help of state departments A central government ministry undertakes the task of measuring GDP with the help of various government departments of all Indian states and union territories.

Ans 4.
(b) Right to Work MGNREGA 2005 recognizes the Right to Work by guaranteeing 100 days of employment in a year to those who need it in rural areas. Ans 5.
(c) Industrial sector The secondary sector is also called the industrial sector because it involves manufacturing activities associated with industries. Ans 6.
(c) A government school teacher A government school teacher works in the organised sector with regular employment, fixed hours, and all benefits. All other options are examples of unorganised sector workers.

Ans 7.
(b) About 625 districts of India MGNREGA 2005 is implemented in about 625 districts across India, covering both developed and backward areas. Ans 8.
(c) Tertiary sector Transportation is a service activity that helps in the production process and belongs to the tertiary sector. Ans 9.
(a) Primary sector At initial stages of development, the primary sector was the most important sector of economic activity in India and other countries. Ans 10.
(b) Fixed number of hours Workers in the organised sector are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer.

SECTION B - Answers to Short Answer Questions

Ans 11. Why only final goods counted in GDP Reason: Only final goods and services are counted in GDP to avoid double counting. Final goods are those that reach the consumers and are not used for further production. Example: A farmer sells wheat to a flour mill for Rs 20 per kg. The mill grinds wheat and sells flour to a biscuit company for Rs 25 per kg. The company makes biscuits and sells them for Rs 80. • Wheat and flour are intermediate goods • Biscuits are final goods • The value of biscuits (Rs 80) already includes the value of wheat and flour • If we count wheat (Rs 20), flour (Rs 25), and biscuits (Rs 80) separately, we would be counting the value of wheat and flour multiple times • Therefore, only the value of final goods (Rs 80) should be counted in GDP Ans 12. Examples of sectors Primary Sector (activities using natural resources):

1. Cultivation of rice

2. Dairy farming Secondary Sector (manufacturing activities):

1. Manufacturing steel from iron ore

2. Making furniture from wood Tertiary Sector (service activities):

1. Banking services

2. Teaching in schools Ans 13. Why tertiary sector is called service sector The tertiary sector is called the service sector because: • These activities generate services rather than goods • They do not produce a good by themselves but provide support for the production process • Examples include transport, storage, communication, banking, and trade • It also includes essential services like teachers, doctors, lawyers, and administrative workers • All these activities help in development but do not produce tangible goods, hence the name "service sector" Ans 14. Historical pattern in developed countries The historical pattern observed in developed countries shows a shift in the importance of sectors over time:

Stage 1: Initially, the primary sector was the most important in terms of production and employment. Most people worked in agriculture. Stage 2: Over time (more than hundred years), as new methods of manufacturing were introduced, factories expanded. The secondary sector gradually became the most important in production and employment. Stage 3: In the past 100 years, there has been a further shift from secondary to tertiary sector. The service sector has become the most important in terms of production and employment in developed countries.

SECTION C - Answers to Short Answer Questions

Ans 15. What the data indicates This data reveals a significant problem in the Indian economy:

1. Indicates underemployment in agriculture: • More than half (about 44%) of workers are in the primary sector • But they produce only about one-sixth (17%) of GDP • This means there are more people in agriculture than is necessary • Workers in agriculture are not producing as much as they could • This is a clear case of underemployment or disguised unemployment

2. Mismatch between employment and production: • While there has been a change in production pattern (tertiary sector now produces most) • There has not been a similar shift in employment pattern • Not enough jobs have been created in secondary and tertiary sectors • People continue to depend on agriculture for livelihood even though it doesn't provide adequate income

3. Need for policy intervention: • This situation shows the need for creating more employment in other sectors • If surplus workers from agriculture can be moved to productive work in other sectors, overall production and income would increase • Government programs like MGNREGA are needed to provide alternative employment opportunities • Investment in rural industries and infrastructure is necessary to create jobs Ans 16. Role of government in public sector Role of Government:

1. Providing infrastructure: • Government provides essential infrastructure like roads, bridges, railways, dams, electricity • These need large investments beyond the capacity of private sector • Government ensures these facilities are available for everyone at affordable rates

2. Supporting economic activities: • Government sells electricity at reasonable rates so industries can afford it • Buys wheat and rice from farmers at fair prices and sells through ration shops • This supports both producers and consumers

3. Welfare services: • Provides health and education facilities for all • Runs government schools, especially for elementary education • Operates government hospitals • Takes care of poorest regions through increased spending Why Private Sector Cannot Provide All Services:

1. High initial investment: • Some activities need spending large sums of money • This is beyond the capacity of private companies • Example: Building a national highway network or railway system

2. Difficulty in cost recovery: • Collecting money from thousands of people who use facilities is not easy • Even if private sector provides these, they would charge very high rates • Common people would not be able to afford them • Example: If all roads were private toll roads, transport costs would be very high

3. Not profitable: • Private sector is guided by profit motive • Some essential services may not be profitable • Private sector may not provide these services at all • Example: Building roads in remote areas, providing education in backward regions Ans 17. Employment conditions and need for protection Comparison of Employment Conditions: Aspect Organised Sector Unorganised Sector Registration Registered with government, follows rules Not registered, rules not followed Working hours Fixed hours (usually 8 hours) Long, irregular hours Wages Regular, adequate salary Low, irregular wages Job security High security of employment No job security Benefits Paid leave, PF, gratuity, medical No benefits Why We Need to Protect Unorganised Sector Workers:

1. Exploitation and poor conditions: • Workers are often exploited with very low wages • Working conditions are poor and unsafe • They have no bargaining power

2. No legal protection: • Since units are not registered, labor laws are not enforced • Workers can be removed without notice • No compensation for injuries or accidents

3. Social and economic reasons: • About 90% of workers are in this sector • Majority from SC, ST, and backward communities • Face both economic exploitation and social discrimination • Protection necessary for economic development and social justice

SECTION D - Answer to Long Answer Question

Ans 18. Underemployment or disguised unemployment MEANING: Underemployment or disguised unemployment is a situation where people are apparently working but all of them are made to work less than their potential. In this kind of unemployment: • Everyone appears to be employed • None remains idle • But in actual fact, their labor effort gets divided • Each one is doing some work but no one is fully employed • If some people are removed from work, production will not be affected • This is hidden unemployment, not visible like open unemployment EXAMPLE 1 - RURAL AREA:

Laxmi's farm: • Laxmi owns about 2 hectares of unirrigated land • She grows jowar and arhar (crops dependent on rainfall) • All five members of her family work in the plot throughout the year • Why? They have nowhere else to go for work • In reality, only 3 people are required to work on 2 hectares • If 2 people move out to work elsewhere (say, in a factory), production on the farm will not be affected • These 2 people are disguisedly unemployed • They appear to be working but are not contributing to production EXAMPLE 2 - URBAN AREA:

Casual workers searching for daily employment: • In urban areas, there are thousands of casual workers who search for daily employment • They work as painters, plumbers, repair persons, doing odd jobs • Many of them don't find work everyday • Example: Ramesh is a painter who gets work for only 10-15 days in a month • For the remaining days, he either remains idle or does petty jobs earning very little • Similarly, street vendors spend the whole day on the street but earn very little • They are underemployed because they don't have better opportunities • They could work more productively if proper employment was available

SOLUTIONS TO UNDEREMPLOYMENT:

1. Improve agricultural productivity: • Provide irrigation facilities through wells, canals, dams • With irrigation, farmers can grow multiple crops • This provides more employment throughout the year • Example: If Laxmi gets irrigation, she can grow wheat in rabi season, providing 50 more days of work per hectare • Government can invest in irrigation or banks can provide loans

2. Develop rural infrastructure: • Build better rural roads for transport • Set up storage facilities for agricultural produce • Establish cold storage for vegetables • This creates employment in transport and trade • It also helps farmers get better prices

3. Promote rural industries: • Set up agro-processing industries in semi-rural areas • Example: Dal mills, food processing units, honey collection centers • These can absorb surplus labor from agriculture • Provides productive employment without requiring migration to cities

4. Provide cheap credit: • Banks should provide loans at reasonable interest rates • Farmers can invest in irrigation, equipment, seeds • This increases production and creates more work • Also helps farmers take up allied activities like dairy, poultry

5. Government programs: • MGNREGA provides 100 days of guaranteed employment • Works undertaken should help increase future agricultural productivity • This provides alternative employment opportunities • Reduces dependence on agriculture alone

6. Skill development and education: • Improve education facilities in rural areas • Provide skill training for youth • This enables them to take up jobs in other sectors • Can work in industries or service sector

SECTION E - Answers to Case Study Based Questions

Ans 19. Case study on dam and employment
(a) Employment creation in different sectors: (2 marks)

1. Primary Sector: • Farmers could grow two crops instead of one • More labor needed during sowing and harvesting • Indirect employment: Farmers needed more agricultural laborers to work on their fields • This increased employment in agricultural activities

2. Secondary Sector: • Direct employment: 5,000 construction workers employed for two years in building the dam • Food processing units were set up to process vegetables • These manufacturing units created employment for workers

3. Tertiary Sector: • Transport business increased as farmers needed to transport more produce • Small traders opened shops to sell seeds, fertilizers, tools • These trade and commerce activities created employment in services Thus, a single infrastructure project (dam) created employment across all three sectors of the economy.
(b) Interdependence of sectors: (2 marks) This case clearly shows how all three sectors are interdependent:

1. Secondary depends on Primary: • Food processing units (secondary) depend on vegetables grown by farmers (primary) • Without agricultural produce, processing units cannot function

2. Primary depends on Secondary: • Farmers need manufactured goods like seeds, fertilizers, and tools • These are sold by traders but produced in factories (secondary sector) • Without these inputs, farming productivity cannot improve

3. Both depend on Tertiary: • Farmers need transport services to take produce to markets • Without transport, they cannot sell their products • Processing units also need transport for raw materials and finished goods • Trade services (shops selling seeds, fertilizers) are essential for both farmers and industries

4. Infrastructure supports all: • The dam (tertiary sector infrastructure) enabled increased production in primary sector • This in turn supported growth of secondary sector (processing units) • All sectors grew together because of their interdependence Ans 20. Case study on organised vs unorganised sector
(a) Comparison and sectors: (2 marks) Ramesh (Organised Sector): • Works in a big factory registered with government • Fixed working hours: 9 AM to 5 PM (8 hours) • Regular monthly salary of Rs 25,000 • Benefits: Medical insurance, 15 days paid leave, provident fund, gratuity • Job security: Cannot be removed easily • Works in safe environment with proper facilities Karim (Unorganised Sector):

• Works in a small workshop, likely not registered • Long working hours: 10-12 hours daily • Daily wage of Rs 400, but only when there is work (irregular income) • No benefits: No leave, no medical insurance • No job security: Can be asked to leave anytime • Probably works in poor conditions Key Differences: Despite both working in manufacturing (one in car factory, other in parts workshop), their working conditions are vastly different because Ramesh works in organised sector while Karim works in unorganised sector.

(b) Importance of creating organised sector jobs: (2 marks)

1. Better quality of life: • Organised sector jobs provide decent wages and regular income • Workers can plan their expenses and savings • Medical benefits ensure health security • Paid leaves allow rest and recovery • Example: Ramesh can afford better education for his children, save for future

2. Social security: • Provident fund and gratuity provide financial security for future • Job security reduces anxiety and stress • Workers have dignity and respect • Can lead productive lives without constant worry

3. Economic development: • Workers with regular income can consume more goods and services • This creates demand and helps economy grow • Better paid workers are more productive • Social security reduces inequality

4. Majority in unorganised sector: • Currently, about 90% workers are in unorganised sector • They face exploitation and poverty • Creating more organised sector jobs is essential for inclusive development • It will improve living standards of majority of workers