Class -10 Sectors of Indian Economy notes

1.Do you think the classification of economic activities into primary, secondary and
tertiary is useful? Explain how.

AnsThe classification of economic activities into primary, secondary and tertiary is useful on
account of the information it provides on how and where the people of a country are employed.
Also, this helps in ascertaining as to which sector of economic activity contributes more or less
to the country’s GDP and per capita income. If the tertiary sector is developing much faster than
the primary sector, then it implies that agriculture is depleting, and the government must take
measures to rectify this. The knowledge that the agricultural profession is becoming unpopular
or regressive can only come if we know which sector it belongs to. Hence, it is necessary to
classify economic activities into these three basic sectors for smooth economic administration
and development.
2. 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.​
Ans: Employment and GDP are two of the most important factors in the development of a
country. Employment and GDP are used to calculate the overall productivity and National
income of a country. If a country has a high employment rate, its GDP, National Income and per
capita income will automatically increase. Hence, these are the two things which have been
given major emphasis in this chapter. Other issues which should be examined are as follows:
1.​ Health care facilities
2.​ Education
3.​ Poverty
4.​ Food Production
5.​ Nourishment

3. 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.
Ans: The activities performed by human beings for a living are classified into three sectors:
primary, secondary and tertiary. When we see people around us, we can classify their
employment sector in either of the three classifications. Activities like cleaning, agriculture, and
selling vegetables are examples of the primary sector. Manufacturing of goods is an example of
the secondary sector. Teaching, mining, banking, transportation are all examples of the tertiary
sector.
4.How is the tertiary sector different from other sectors? Illustrate with a few examples.
Ans: The tertiary sector is different from the other 2 sectors because the other two sectors
produce goods, the only difference is that this sector does not manufacture goods by
themselves. The activities under this sector help in developing the primary and secondary
sectors. These activities support the manufacturing process.
Example: communication, banking, storage, insurance, transport, trade etc. Hence, these are
called the service sector.
5. What do you understand about disguised unemployment? Explain with an example each
from the urban and rural areas.​
Ans: Disguised Unemployment is a kind of unemployment in which there are people who are
visibly employed but are actually unemployed. This situation is also known as Hidden
Unemployment. In such a situation more people are engaged in work than required.
For example in rural areas, this type of unemployment is generally found in the agricultural
sector like – in a family of 9 people all are engaged in the same agricultural plot. But if 4 people
are withdrawn from it there will be no reduction in output. So, these 4 people are actually
disguisedly employed.
In urban areas, this type of unemployment can be seen mostly in service sectors such as in a
family where all members are engaged in one petty shop or a small business which can be
managed by fewer people.
6. Distinguish between open unemployment and disguised unemployment.
Ans:Open Unemployment – When a country’s labor force does not get opportunities for
adequate employment, this situation is called open unemployment. This type of unemployment
is generally found in the industrial sector of our country. This is also found among the landless
agricultural laborers in rural areas.​
Disguised Unemployment – This is a kind of unemployment in which there are people who are
visibly employed but actually they don’t have full employment. In such a situation more people
are engaged in work than required. This type of unemployment is generally found in the
unorganized sector where either work is not constantly available or too many people are
employed for the same work that does not require so many hands.
7.Tertiary sector is not playing any significant role in the development of the Indian economy. Do
you agree/ Give reasons in support of your answer?
Ans:“The tertiary sector is not playing any significant role in the development of Indian
economy” is partially correct due to reasons as mentioned below :
The share of the tertiary sector in employment has not increased in proportion to its increase in
production. In 2000, the production in the service sector rose by 11 times, whereas employment
rose less than three times. Therefore, still more than half of the workers in the country are
working in the primary sector.
New services such as information technology have become important, but not all the services of
the service sector are growing well. At one end are highly skilled and educated workers but on
the other end, there are a very large number of workers engaged in services such as small
shopkeepers, repair Arsons, transport persons. These persons barely manage to earn a living
and yet they perform these services because no alternative opportunities for work are available
to them. Such persons can not play any important role in the development of the Indian
economy. It is this part of the service sector that is not growing in importance.
8. Service sector in India employs two different kinds of people. Who are these?
Ans :The service sector in India employs the following two different kinds of people. They are:
(a) The people involved in the services that may directly help in the production of goods. For
example, people involved in the transportation, storage, communication, finance etc.
(b) The people involved in such services that may not directly help in the production of goods
e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers
meaning those who give services to the primary service providers.
9: Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons
in support of your answer.​
Ans:Yes, workers are exploited in the unorganized sector.
1.​ There is no fixed number of working hours. The workers normally work 10 – 12
hours without paid overtime.
2.​ They do not get other allowances apart from the daily wages.
3.​ Government rules and regulations to protect the laborers are not followed there.
4.​ There is no job security.
5.​ Jobs are low paid and the workers in this sector are generally illiterate, ignorant
and unorganized. So they are not in a position to bargain or secure good wages.
 6.​ Being very poor they are always heavily in debt. So, they can be easily made to
accept lower wages.
10: How are the activities in the economy classified on the basis of employment conditions?
Ans:On the basis of employment conditions, the activities in the economy are classified into
organized and unorganized sectors
11:Compare the employment conditions prevailing in the organized and unorganized sectors.
Ans:The employment conditions prevailing in the organized and unorganized sectors are vastly
different. The organized sector has companies registered with the government and hence, it
offers job security, paid holidays, pensions, health and other benefits, fixed working hours and
extra pay for overtime work. On the other hand, the unorganized sector is a host of opposites.
There is no job security, no paid holidays or pensions on retirement, no benefits of provident
fund or health insurance, unfixed working hours and no guarantee of safe work environment
12: Explain the objective of implementing the NREGA 2005.​
Ans:The objective of implementing the NREGA 2005 i.e., National Rural Employment Guarantee
Act 2005 is to implement the right to work.
The Act has to be implemented in 200 districts.
1.​ Under this Act, all those who are able to, and are in need of work have been
guaranteed 100 days of employment in a year by the government.
2.​ If the government fails in its duty to provide employment, it will give
unemployment allowance to the people.
3.​ The types of work that would in future help to increase the production from land
will be given preference under this Act.
13: Using examples from your area, compare and contrast the activities and functions of
private and public sectors.​
Ans:9:Discuss and fill the following table giving one example each from your area.
Well-managed organization Badly-managed organization

Public sector

Private sector

Ans Well-managed organization Badly-managed organization

Public sector Delhi Metro Rail Corporation Milk Co-operative society

Private sector Reliance Mobile Satyam

14. The workers in the unorganized sector need protection on the following issues: wages,
safety and health. Explain with examples.
Ans: The workers in the unorganized sector need protection:
Wages: Laborers who are employed as a repair person, vendor etc. do not have fixed income.
They nearly manage to earn their living. They are not employed all through the year.
Safety: Workers in the unorganized sector are not provided with safe drinking water or a clean
environment. Eg., Working in mining, chemical industries is hazardous.
Health: Leave not granted in case of sickness. Medical facilities are not offered, E.g.
Construction workers.
A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the
unorganized 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 organized sector. Present this data as a table.
What kind of ways should be thought of for generating more employment in the city?
Organized Sector Unorganized Sector Total

No. of workers 4,00,000 11,00,000 15,00,000

Income (Rs) 32,000 million 28,000 million 60,000 million

It is clear that while a larger portion of workers is working in the unorganized sector, the per
capita earning of those in the organized sector is more. The government should encourage the
entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, the
government should introduce some incentives so that
more industries could be opened up in the organized sector
.The following table gives the GDP in Rupees (Crores) by the three sectors:
Year Primary Secondary Tertiary

1950 80,000 19,000 39,000

2011 8,65,000 13,70,000 30,10,000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.​
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.​
(iii) What conclusions can we draw from the bar graph?
Ans: (i) In 2000,​
Share of primary sector = 22.22%​
Share of secondary sector = 20.73%​
Share of tertiary sector = 57.04%
In 2013,Share of primary sector = 13.94%Share of secondary sector = 18.70%Share of tertiary
sector = 67.36%

(ii)
(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has increased by
10%, while that of the primary sector has almost halved. The secondary sector has grown by
about 2% in the last 13 years.
15. ‘While estimating the national income, only the value of the final goods and services is
used.’ Explain with the help of an example.
Ans: 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 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 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 the
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.
16. 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]
Ans: (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, defense, 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 centers, schools, professional
training centers, banks, etc.
(iv) New services : With modernisation and globalization, some new services based on
information and communication technology have become important and essential. The
production of these services has been rising rapidly.
17. Explain any four points of importance of the Secondary sector in the Indian economy.
[CBSE Comp. 2008 (D)]
Ans: (i) The Secondary sector contributes more than 20% to the GDP of India.​
(ii) It provides employment to the people.​
(iii) 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
18. Suggest some ways which can be helpful in creating employment in rural areas. [CBSE
Sept. 2010, 2011]OrWhat 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]
Ans: (i) Diversification of agriculture: More than 60 percent of our workers are employed in
agriculture. But our farmers are producing only limited crops. There is a 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 them in the cities. In villages, near forest
areas, honey collection centers can be started where farmers can come and sell wild honey.
19. What are the advantages of working in an organized sector? [CBSE Sept. 2011] OrWhat is
an organized sector? Describe its working conditions. [CBSE 2009 (D)]
Ans: An organized 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 organized 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.
20. Explain the role of government in the public sector. [CBSE Sept. 2013]
Ans: (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 mobilized 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.
21. Do you agree that agriculture is an activity of the unorganized sector in India. Give
any four points. [CBSE Sept. 2010, 2012]
Ans: Yes. Agriculture in India is an activity of the unorganized sector.​
(i) Most of the workers working in agriculture are ill paid.​
(ii) Agriculture sector faces the problem of underemployment.​
(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.
22. How can workers in the unorganized sector be protected ? Explain. [CBSE Sept. 2010,
2011]
Ans: (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, and
food to these workers.​
(iv) Government can frame new laws which can provide provision for overtime, paid leave, leave
due to sickness, etc.
23. Write two groups of people working in the unorganized sector who are in need of
protection. How can the government protect them ? [CBSE Sept. 2010]
Ans: (i) In the rural areas, the unorganized sector mostly comprises the landless agricultural
laborers, small and marginal farmers, sharecroppers and artisans (such as weavers,
blacksmiths, carpenters and goldsmiths).​
(ii) In the urban areas, the unorganized 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, and health at a cheap and
affordable rate.
24. Explain how a shift has taken place between sectors in developed countries. [CBSE Sept.
2011]
Ans: (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 the 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 the service sector is due to globalization of the world economy.
25.Explain the role of the public sector. Suggest any two ways to improve the working of the
public sector or government. [CBSE Sept. 2012]ORWhy is the public sector required to provide
certain things at reasonable cost? [CBSE 2013]OrIdentify 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 the private sector, can be
provided by the public sector? Explain. [CBSE 2012]
Ans: (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 the 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 they are not satisfied with any government department.
26. Explain the interdependence of all the three economic sectors giving examples from the
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]
Ans: (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., the 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 goods. 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.
27.“Income and employment will increase if the farmers are provided irrigation and marketing
facilities”. Justify the statement. ‘
Ans: (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.
28.What is underemployment? Explain with an example. [CBSE Sept. 2013]
Ans: (i) It is a 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.
29. What are secondary activities? Explain with examples. [CBSE Sept. 2010]
Ans: 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, it cannot be
used directly by us . 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.
30. What are tertiary activities? Explain with examples. [CBSE Sept. 2010]
Ans: 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.
31. What are primary activities? Explain with examples. [CBSE Sept. 2010]
Ans: 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.
32 What is GDP? Who is responsible for collecting data for the GDP in India? [CBSE Comp. (O)
2008,14]
Ans: 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.
33. What is disguised unemployment? Explain. [CBSE 2010 (D), Sept. 2010]OrHow far is it
correct to say that disguised unemployment can also be called underemployment? Explain.
[CBSE 2012]
Ans: (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 as 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.
34. What is an organized sector ? Explain [CBSE 2009 (O)]
Ans: (i) An organized 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 organized because they have some processes and procedures.
35. What is an unorganized sector? Explain.
Answer: (i) An Unorganised Sector is a sector which is not registered by the government.​
(ii) The unorganized sector is characterized 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.
36.Who are the people that work in an unorganized sector ? Mention any two social values
which you have learnt from the working conditions of the unorganized sector.
Answer: (i) In the rural areas, the unorganized sector mostly comprises the landless agricultural
laborers, small and marginal farmers, sharecroppers and artisans (such as weavers,
blacksmiths, carpenters and goldsmiths).​
(ii) In the urban areas, the unorganized 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 unorganized sector.​
Social Values :​
(i) Most of the people working in the unorganized sector belong to backward communities.​
(ii) These workers face social discrimination.
37. What are the objectives of NREGA 2005? [CBSE Sept. 2010, 2011, 2012]
Ans:(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.
38. What are the two sectors of economic activities on the basis of the ownership of
resources? Explain.
Ans: 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, Reliance Industries Ltd.
39. Describe any four points of importance of the primary sector in the Indian economy. [CBSE
2008 Comp. (D)]
Ans: (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 laboring sector of the Indian economy.​
(iv) It covers agriculture, dairy, fishing, forestry which all contribute to the Indian economy.
40. Enumerate the various causes of rural unemployment in India. [CBSE 2013]
Ans: (i) Lack of skill and education : The most important factor responsible for rural
unemployment is lack of education and skill.​
(ii) Domination of the primary sector : Most of the people of rural areas are involved in primary
activities. The possibility of unemployment in the 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.
41. How can employment opportunities be generated in the tourism and information and
technology centers? [CBSE 2013]
Ans: (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.
42.Differentiate between economic and non-economic activities. Give any two points.
1. Economics activities are such activities which get you some income while performing them.
For example, a doctor is earing by treating his patients. Non-economic activities are the
activities from which you do not gain anything to earn you any income. For example, a doctor
treating his own family members doesn't earn any money
43. Using examples from your area compare and contrast activities and functions of Private and
Public sectors
Ans:The main aim of this sector is public welfare. It is controlled and managed by the
Government. Necessary facilities provided by the Government. Employment is secured. Fixed
wages and important facilities are Provided. Such as medical claim and so on. The sector
provides basic facilities like education, health, food and security to the people, for example,
BSNL, Post office and so on.
ThePrivate sector's main aim of this sector is to earn maximum profit. It is controlled and
managed by an individual or group of individuals. All the facilities provided by Individual or
group of individuals. Employment is not secured. Generally neither fixed wages nor other
important facilities are provided. The sector provides consumer goods to the people. For
example — TISCO, Reliance and so on. .
44. Distinguish between organized and unorganized sector.
Ans:Organized sector Fixed working hours. Fixed Minimum wages Secured employment.
Enjoyable working conditions. Other facilities such as medical, gratuity, Other pensions are;
provided. Unorganized sector Working hours are not fixed. Less than minimum wages fixed by
the government. Employment is not secured. Working conditions are not up to the mark. No
such facilities provided
45.What are the various ways to provide employment opportunities in rural areas?
Ans:Provide loans to small farmers for cultivation, irrigation and so on. • Dams, canal can be
constructed will lead to a lot of employment generation. • Construction of roads in rural areas
creates employment in rural communities. • More and more schools should be opened which
would create jobs in the education sector and literacy as well in rural areas. • To improve the
health situation, we need more doctors, nurses and health workers to work in rural areas.
46.Describe the estimate of the planning Commission to create jobs in tourism and education.
Ans:(i) Planning Commission estimates that nearly 20 lakh jobs can be created in the education
sector alone. (ii) More children to attend school, more teachers and more infrastructure will be
required. (iii) Planning Commission estimates that nearly 35 lakh jobs can be created in the
tourism sector.
47.How to generate employment in rural areas and urban areas?
Ans(i) Invest in basic industries which provide mass employment. (ii) Improve local and inter-city
transportation so that more people can be employed to work in the transportation industry. (iii)
Increasing vocational education courses, so that people educated for a vocation get jobs easily.
●​ More Industries should be set up to provide large scale employment to the people.
●​ Education system should be made job oriented.
●​ Tourism as an industry should be promoted.
●​ The Healthcare sector can create large employment in Urban areas.
Difference between Final and intermediate goods?
Ans:Final goods are referred to as those goods which do not require further processing. These
goods are also known as consumer goods and are produced for the purpose of direct
consumption by the end consumer. Intermediate goods are referred to as those goods that are
used by businesses in producing goods or services.