Ans.1 Organised Sector Unorganised Sector
(i) Working conditions are regulated on (i) There are rules but they are
the basis of government rules and not strictly implemented for the
regulations. benefit of workers.
(ii) Workers have job security. (ii) Worker have no job security.
(iii) Workers get weekly holidays, medical (iii) There are no such benefits at work.
facilities, retirement benefits, etc.
2:- Public sector is an important sector for the development of economy.
(i) There are several things needed by the society as a whole but which the private sector will
not provide at a reasonable cost. As huge sum of amount is needed which private sector
can not afford, so public sector is needed there. For example, building bridges, railway etc.
(ii) There are several basic activities which government has to support, for example, selling
electricity at lower cost, providing driking water at affordable rate etc.
(iii) There are some activities which government has to perform like providing health and
education facilities.
Ans. The National Rural Employment Guarantee Act, which is now called Mahatma Gandhi
National Rural Employment Guarantee Act or ‘MNREGA’, has improved employment
situation in rural India in the following ways —
(i) As this Act provides minimum 100 days of work guarantee to a member of each rural
family, it means no family will be without the opportunity of work although only for 100
days.
(ii) By providing jobs some assets are being created in rural areas which are further creating
jobs like tree plantation, pool construction, etc.
(iii) MNREGA has checked mass rural migration to urban centres for jobs and other livelihood
opportunities
. In the public sector, the government owns most of the assets and provides all the services. In
the private sector, ownership of assets and delivery of services is in the hands of private
individuals or companies. Railways and Post Office is an example of the public sector whereas
companies like Tata Iron and Steel Company Limited (TISCO) and Reliance Industries Limited
(RIL) are in private sector.
It includes those activities in which goods are produced by exploiting natural resources like land,
water etc.
It is called primary because it forms the base for other products that we subsequently make.
Since most of the natural products we get are from agriculture, diary, fishing and forestry. This
sector is also called agriculture and related sector.
(2) SECONDARY SECTOR
It covers activities in which natural products are processed and transformed into products of
higher value.
Activities related to manufacturing and construction are included in this sector.
It is also called industrial sector.
(3) TERTIARY SECTOR
The activities which provide service facilities.
They support the production process in primary and secondary sector.
It is also called service sector because this sector generates services rather than producing goods.
E.g. transport, trade, banking etc.
NREGA- National Rural Employment Guarantee Act
(a) Under NREGA 2005, all those who are unable to and are in need of work are guaranteed 100 days of
employment in a year by government.
(b) If the government fails in its duty to provide employment it will give unemployment allowances to
these people.
(c) The types of work that would in future help to increase the production from land will be given
preference under the act.
Thus, the Right to Work has been made legal under the Act.
U Q. 1. Under which economic sector does the production
of a commodity through the natural process come?
[Board Term-I, 2015, 2014, Set-C5JWEVD
(WQ7FXWC), (R9UJGYG)]
Ans. Primary sector. 1
A Q. 2. Name the sector which continued to be the largest
employer even in the year 2000.
[Board Term-I, (X30T4XE), 2014]
Ans. Primary sector. 1
U Q. 3. In which sector are natural products changed into
form through ways of manufacturing?
[Board Term-I, Set-M, DDE-2015]
Ans. Secondary. 1
U Q. 4. In which sector is manufacturing included?
[Board Term-I, DDE-2014]
Ans. Secondary sector. 1
A Q. 5. Which sector has gained prominence over the
last thirty years?
[Board Term-I, (6HTQGTF), 2016-17]
Ans. Tertiary sector. 1
A Q. 6. Development of the primary and secondary
sector? [Board Term-I, (WQ7FXWC), 2014]
Ans. Tertiary sector. 1
A Q. 7. Which sector had the highest share in GDP in
2003? [Board Term-I, DDE-2014]
Ans. Tertiary sector. 1
A Q. 8. Which sector generates services rather than
goods?
Ans. Tertiary. 1
A Q. 9. Services such as transport, banking and
insurance come under which sector?
Ans. Tertiary sector. 1
A Q. 10. Mention the share of tertiary sector in terms of
GDP in 2003? [Board Term-I, 2015] [NCERT]
Ans. Between 50-60% 1
A Q. 11. Which occupation belongs to the primary
sector? Mention any one.
[Board Term-I, (6HTQGTF), 2016-17]
Ans. Agriculture. 1
SECTORS OF THE INDIAN ECONOMY [ 299
A Q. 12. Which sector helps in the development of the
primary and secondary sector?
[Board Term-I, Set-XOKG2SB, 2015]
Ans. Service /Tertiary sector. 1
U Q. 13. Write three activities which belong to the
primary sector.
Ans. Agriculture, dairy and mining. 1
U Q. 14. Mention any one factor responsible for the
growth of service sector in the Indian economy.
[Board Term-I, (NLTM8TU), 2016-17]
Ans. The development of agriculture and industry lead
to the development of services such as transport,
trade, storage , etc. 1
A Q. 15. TISCO and Reliance are owned by which
sector? [Board Term-I, (OEQL2HT), 2016-17]
Ans. Private sector. 1
A Q. 16. Sahara Airlines and B.S.E.S. are examples of
which sector?
Ans. Private sector. 1
A Q. 17. Railway is an example of which sector?
Ans. Public sector. 1
A Q. 18. A.T.M. is an example of which sector?
[Board Term-I, Set-DDE, 2015]
Ans. Service sector. 1
U Q. 19. In which sector is seasonal and disguised
unemployment most prevalent in India?
[Board Term-I, Set-M, DDE-2015]
Ans.Agriculture Sector 1
U Q. 20. Where is the disguised unemployment formed
mostly? [Board Term-I, Set-6AP67LB, 2015]
Ans. Agriculture sector. Casual workers in the service
sector. 1
U Q. 21. What do final goods and services mean?
[Board Term-I, (X30T4XE), 2014]
Ans. Total production of the sectors. 1
U Q. 22. Which communities generally find them in the
unorganized sector?
Ans. Schedule tribes and backward communities. 1
Short Answer Type Questions (3 marks each)
U Q. 1. Explain the meaning of tertiary sector. Mention
any four economic activities of this sector.
[Board Term-I, (R9UJGYG), 2014]
Ans. Tertiary Sector : These are activities that 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.
Four economic activities of this sector are—
banking, transport, storage, communication, etc. 3
A Q. 2. Why is the tertiary sector becoming more
important in India? Explain by giving any three
reasons. [Board Term-I, Set-6HTQGTF, 2016-17]
Ans. (i) In any country several basic services
like transport, bank, insurance, educational
institutions, etc., are required and the
government has to take responsibility for the
provision of these services.
(ii) The development of agriculture and industry
lead to the development of services, such as
transport trade, storage, etc.
(iii) As income level rises, certain sections of people
started demanding many services like eating
out, tourism, private hospitals, etc.
(iv) Certain new services such as those based on
information and communication technology
have become important and essential.
(v) Greater the development of the primary and
secondary sectors, more would be the demand
for such services. (Any three) 1 × 3 = 3
(CBSE Marking Scheme, 2016)
U Q. 3. How is tertiary sector different from the other
two sectors of economic activities? Explain.
[Board Term-I, Set-NLTM8TU, 2016-17]
Ans. Tertiary sector is different from other two
sectors because:
(i) It does not provide or produce goods.
(ii) It provides services such as transport, I.T.,
communications, etc.
(iii) It is the backbone of all the sectors.
(iv) More the primary and secondary sectors develop,
there increases the requirement of services.
(Any three) 1×3=3
(CBSE Marking Scheme, 2016)
A Q. 4. Classify the economic sectors on the basis of
nature of activities. Mention the main feature
of each.
[Board Term-I, Set-X30T4XE, 2014, (33), 2012]
OR
A Explain the three sectors of economic activities
with the help of examples.
[Board Term-I, (580012, 13, 27, 28, 31, 32, 43), 2011]
OR
A Explain the primary, secondary and tertiary
sectors by giving examples of each.
[Board Term-I, (B1), 2010]
OR
A How are the three sector of the economy different
from each other? Explain.
[Board Term-I, Set-6AP67LB, 2015]
300 ] Oswaal CBSE Question Bank, SOCIAL SCIENCE, Class – X
Ans. Classification of economic sectors on the basis of
nature of activities are as follows:
(i) Primary sector : When we produce goods by
exploiting natural resources, it is an activity of
the primary sector, such as agriculture, dairy
farming, fishing, forestry.
(ii) Secondary sector : In this, natural products
are changed into other forms through
manufacturing that we associate with industrial
activity. The product is not produced by nature
but has to be made and therefore, some process
of manufacturing is essential. For example, using
cotton fibre from the plant we spin, yarn and
weave cloth.
(iii) Tertiary sector : It helps in the development of
the primary and secondary sectors. They provide
aid or a support for the production process.
Transport, storage, communication, banking,
trade are some examples of tertiary activities.
1 × 3 = 3 (CBSE Marking Scheme, 2015)
U Q. 5. Explain any three reasons for the Primary Sector
to be the largest employer in India.
[Board Term-I, Set-C5JWEVD, 2015]
Ans. Primary sector continues to be the largest
employer because :
(i) Enough jobs have not been created by the
secondary and Tertiary sector.
(ii) In the Tertiary sector though the production has
risen almost 11 times but employment has grown
only 3 times.
(iii) Not employed anywhere else flocks to the
primary sector. 1 × 3 = 3
(CBSE Marking Scheme, 2015)
A Q. 6. Classify the sectors of economy on the basis of
ownership. [Board Term-I, KVS-2014]
OR
A How are the economic activities classified on
the basis of ownership? Explain with suitable
examples. [Board Term-I, (59), 2012]
OR
U Differentiate between public and private sectors.
[Board Term-I, (74), 2012]
OR
U Differentiate between the public and private
sectors in an economy with examples.
[Board Term-I, (49), 2012]
Ans. Public Sector :
(i) The government owns most of the assets and
provides all the services.
(ii) The purpose of the public sector is not first to earn
profits. Government raises money through taxes
to meet expenses on the services rendered by it.
(iii) Railways or post office is an example of the
public sector.
Private Sector :
(i) Ownership of assets and delivery of services is in
the hands of private individuals or companies.
(ii) Activities in the private sector are guided by the
motive to earn profit. To get such services we have
to pay money to these individuals and companies.
(iii) Tata Iron and Steel Company (TISCO) or
Reliance Industries Ltd.(RIL) are examples of
private sector. 1½+1½=3
(CBSE Marking Scheme, 2012)
U Q. 7. What constitutes the unorganised sector in
urban areas? Why do workers in this sector need
protection? [Board Term-I, Set-E, DDE-2015]
Ans. In the urban areas, unorganised sector comprises
workers in small scale industry, casual workers
in construction, trade and transport, etc. It also
includes street vendors, head load workers,
garment markers, rag pickers, etc.
Workers in this sector need protection from over
exploitation, differential treatment because of
belonging to SC and ST. 3
U Q. 8. Explain the problem of underemployment in the
service sector in urban areas with examples.
[Board Term-I, (OEQL2HT), 2016-17]
Ans. In the urban areas, there are thousands of
casual workers in the service sector who search
daily employment. for example. Petty workers
painters, street vendors, rickshaw pullers, etc,
who are underemployed because they do not
have better work opportunities.
(CBSE Marking Scheme, 2016) 3
U Q. 9. How does service sector in India provide
different kinds of services? Explain.
[Board Term-I,(WQ7FXWC), 2014 (NCERT)]
OR
U Explain how does the public sector contribute to
the economic development of a nation?
[NCERT] [Board Term-I, (580020, 36), 2011]
Ans. Public sector contributes to the economic
development of a nation by the following ways :
(i) Public sector provides many essential things at
a reasonable cost, which private sector cannot
provide.
(ii) The public sector can set up heavy industry which
requires a lot of money.
(iii) The purpose of the Public sector is not to earn
money, but to benefit the people.
(iv) Public sectors are controlled by the government,
provides health and educational facilities.
(Any three) 1 × 3 = 3
U Q. 10. Describe the contribution of three sectors in
Indian economy. [Board Term-I, NCT-2014]
Ans. (i) All the three sectors–primary, secondary and
tertiary of economy are interdependent.
(ii) The various production activities in the three
sectors produce a very large number of goods and
services.
(iii) The three sectors have a large number of people
working in them to produce thee goods and
services. 1 × 3 = 3
A Q. 11. “All of the service sector is not growing equally
well in India.” Justify the statement with three
arguments. [Board Term-I, (H3), 2013]
OR
A Service sector in India employs two types of
people. Explain by giving suitable examples.
[Board Term-I, (580021), 2011]
Ans. (i) Service sector in India employs many
different kinds of people. At one end there are
a limited number of services that employ highly
skilled and educated workers, such as managers,
lawyers, accountants, etc.
(ii) At the other end, there are a very large number
of workers engaged in services, such as small
shopkeepers, repair persons, transport persons.
These people barely manage to earn a living and
yet perform these services.
(iii) There is no alternative opportunity for
them. Only a part of this sector is growing in
importance. 1 × 3 = 3
(CBSE Marking Scheme, 2011, 13)
A Q.12. Explain the interdependence of all the
three economic sectors giving examples from
transportation system. [Board Term-I, (34), 2012]
OR
A How are all the three sectors of the economy
interdependent? Explain this interdependence
with the help of an example.
[Board Term-I, (48), 2012]
Ans. All the three sectors are highly interdependent on
each other :
(i) All that is produced in the primary sector is of no use
until it undergoes a change into finished product
which is not possible without transportation.
(ii) Secondary sector is the manufacturing sector.
To make these products and to sell them in the
market, we need transportation.
(iii) For moving from primary to secondary sector and
further to the market, requires services of trades at
different places and require many other services.
For all this we cannot think of working without
transportation. 1 × 3 = 3
U Q. 13. How would income and employment increase
if farmers are provided with loan, irrigation and
transportation facilities?
[Board Term-I, (36, 37), 2012]
Ans. (i) Loan provided can be used to construct a well,
or to buy better quality of seeds and pesticides.
(ii) Irrigation will help to have a second crop after the
first one, even in the absence of monsoon.
(iii) Transportation facility will facilitate taking their
produce to the market to sell. 1 × 3 = 3
A Q. 14. How is tertiary sector different from other
sectors? Give examples.
[Board Term-I, (580022, 29, 37, 45), 2011]
Ans. Tertiary sector is different from other sectors in
the following ways :
(i) Primary sector includes all those activities which
result in output of natural products.
(ii) Secondary sector includes activities which produce
a new product by transforming the shape of a
natural product.
(iii) Tertiary activities neither produce any natural
product nor transform shape of natural products,
it only supports the activities in both sectors. Steel
produced in a factory has to move long distance.
It can be done by a strong network of tertiary
activities. 1 × 3 =3
Long Answer Type Questions (5 marks each)
U Q. 1. Define tertiary sector. Describe about the different
kinds of people employed in this sector in India.
[Board Term-I, (WQ7FXWC), 2014]
Ans. Tertiary Sector : It helps in the development of the
primary and secondary sectors. They provide aid
or support for the production process.
Different kinds of people employed in this sector
because it provides lots of opportunity for job.
(i) At one end there are a limited number of services
that employ highly skilled and educated workers.
(ii) At the other end, there are a very large number
of workers engaged in services such as small
shopkeepers, repair persons, transporters, etc.
2 + 1½ + 1½ = 5
U Q. 2. Explain why service sector is gaining more
importance in the global economy.
[Board Term-I, (CB4QHT1), 2016-17]
[Board Term-I, (74), 2012]
OR
U Explain any five reasons for the growth of service
sector in India. [Board Term-I, (H3), 2013]
OR
U Why is tertiary sector becoming the most
important sector in India? Given four reasons.
[Board Term-I, (105), 2013, (580026, 45), 2011]
OR
U Evaluate the rising importance of tertiary sector
over the years. [Board Term-I, (34), 2012]
OR
U Explain reasons for the rising importance of the
Tertiary sector in India. [Board Term-I, (52), 2012]
OR
A How far is it correct to say that in recent past,
India has experienced some significant changes
in the contribution to GDP by the service sector?
Explain. [Board Term-I, (55), 2012]
OR
A Why is the Tertiary sector growing so rapidly in
India? Explain it with four reasons.
[Board Term-I, (580012, 19, 24, 28, 40, 42), 2011,
(B1), 2010]
Ans. Tertiary sector in India has been growing rapidly
for a number of reasons :
(i) In a developing country, the government has
to take the responsibility for the provision of
basic services for example, hospitals, educational
institutions, post and telegraph services, police
stations, courts, village administrative offices,
municipal corporations, defence, transport, banks,
insurance companies, etc.
(ii) The development of agriculture and industry
leads to the development of services such as trade,
transport, storage, etc. Greater the development of
the primary and secondary sectors, more would be
the demand for such services.
(iii) As income levels rise, certain sections of people start
demanding many more services, such as eating
out, tourism, shopping, private hospitals; private
schools, professional training, etc. This change was
quite sharp in cities, especially in big cities.
(iv) Over the past decade or so, certain new
services, such as those based on information
and communication technology have become
important and essential.
(v) Government policy of privatisation has also led to
growth of this sector.
(vi) A large number of workers are engaged in services,
such as small shopkeepers, repair persons,
transport persons, etc.
(vii) However, the entire sector has not grown. Large
numbers of people engaged as construction
workers, maid, peons, small shopkeepers, etc., do
not find any change in their life. (Any five)
1 × 5 = 5
A Q. 3. “When a country develops, the contribution of
primary sector declines and that of secondary and
tertiary sector increases.” Analyse the statement.
[Board Term-I, (58), DDE-2014, 2012]
OR
A Describe the historical changes that have taken
place in the sectors of the economy in the
developed countries.
[Board Term-I, (74), 2012] [Board Term-I, 2015]
Ans. (i) In the initial stages of development, the
primary sector was the most important sector
of economic activity. As the methods of farming
changed and agriculture sector began to prosper,
people began to take up other activities.
(ii) New methods of manufacturing were
introduced, factories came up and started
expanding.
(iii) The Secondary sector gradually became the most
important in total production and employment.
(iv) With the development of areas like transport
and administration, the service sector kept on
growing. In the past 100 years, there has been a
shift from the secondary to the tertiary sector in
developed countries.
(v) The service sector has become the most
important in terms of total production and
employment. This is the general pattern
observed in developed countries. 1 × 5 = 5
(CBSE Marking Scheme 2012)
U Q. 4. What is the significance of secondary sector
in Indian economy? How does it help in the
economic development of the country?
[Board Term-I, (580011, 23), 2011]
Ans. The significance of secondary sector is that it
transforms raw materials into commodities. It is
the second largest sector of our country.
Role in Economic development :
(i) Secondary sector uses mechanical power and
modern use of labour.
(ii) It provides employment to a large number of people.
(iii) It also helps in creating self-sufficiency in
the country. It produces goods for local and
international consumers. 2 + 3 = 5
U Q. 5. Explain the importance of the service sector.
[Board Term-I, KVS-2014]
OR
U Explain any five features of tertiary sector?
[Board Term-I, (580014, 33), 2011]
Ans. The main features of the tertiary sectors are :
(i) This sector helps in the development of the
primary and secondary sectors.
(ii) The activities related to this sector do not produce
key good but they are an aid or a support for the
production process.
(iii) It also provides essential services that may not
directly help in the production of goods such as
services of teachers, doctors, barbers, lawyers, etc.
(iv) In recent times, certain new services based on
information technology etc have become more
important.
(v) The services which are included in the tertiary
sectors are transport, storage, communication,
banking, trade , etc. 1 × 5 = 5
U Q. 6. Describe any five provisions of ‘National Rural
Employment Guarantee’ Act 2005.
[Board Term-I, (OEQL2HT), 2016-17]
Ans. Provisions NREGA 2005.
(i) 100 days assured employment every year to each
rural household.
(ii) One-third of the proposed jobs to be reserved for
women.
(iii) If an applicant is not employed within 15 days,
he/she is entitled to a daily unemployment
allowance.
(iv) The governments have to establish Central
Employment Guarantee Funds and State
Employment Guarantee Funds for the
implementation of the scheme.
(v) The scheme is to be extended to 600 districts.
(CBSE Marking Scheme, 2016) 1 × 5 = 5
A Q. 7. There has been a big change in the three sectors
of economic activities, but a similar shift has not
taken place in the share of employment. Explain
the above statement on the basis of facts.
[Board Term-I, (48), 2012]
[Board Term-I, Set-DDE, 2015]
Ans. (i) Industrial output has increased by 8 times but
employment in the sector has increased only by
2-5 times.
(ii) In the tertiary sector, the production of services
rose by 11 times but employment in the services
rose only by 3 times.
(iii) More than half of the workers in the country are
working in the primary sector producing only
one quarter of the goods.
(iv) Secondary and tertiary sectors produce three
fourths of the produce whereas, they only
employ half of the country’s workers.
(v) Primary sector has disguised employment
whereas workers in secondary and tertiary
sectors work overtime. 1 × 5 = 5
(CBSE Marking Scheme 2012)
TOPIC-2
How to Create More Employment?
Very Short Answer Type Questions (1 mark each)
U Q. 1. State the meaning of underemployment.
[Board Term-I, (OEQL2HT), 2016-17]
Ans. Are working less than what they are capable of
doing. (CBSE Marking Scheme, 2016) 1
A Q. 2. What is another name of underemployment?
[Board Term-I, (CB4QHT1), 2016-17]
Ans. Disguised unemployment.
(CBSE Marking Scheme, 2016) 1
U Q. 3.What do you mean by disguised unemployment?
Ans. More people engaged in a job than needed. 1
U Q. 4. Where is the disguised unemployment found
mostly? [Board Term-I, (NLTM8TU), 2016-17]
Ans. Agriculture sector/casual workers in the service
sector. (CBSE Marking Scheme, 2016) 1
U Q. 5.Suggest any one way to solve under-employment
situation in rural areas in India.
[Board Term-I, (CB4QHT1), 2016-17]
Ans. (i) Govt. can spend money on development of
the infrastructure like
l Bank service
l Construction of canals, roads,
l Credit facility
(ii) Identify, promote and locate industries.
(Any one) 1 (CBSE Marking Scheme, 2016)
A Q. 6. When was Mahatma Gandhi National Rural
Employment Guarantee Act implemented?
Ans. 2005. 1
A Q. 7. What does GDP stand for?
[Board Term-I, NCT-2014]
Ans. Gross Domestic Product. 1
A Q. 8. What is GDP (Gross Domestic Product)?
[Board Term-I, (R9UJGYG), NCT-2014]
Ans. It is the value of final goods and services produced
within the domestic territory of a country. 1
U Q. 9. In terms of G.D.P., what was the share of tertiary
sector in 2003?
Ans. Between 50 to 60%. 1
A Q. 10. Give full form of NREGA.
Ans. National Rural Employment Guarantee Act. 1
A Q. 11. For how many days employment is guaranteed
under NREGA 2005?
Ans. 100 days. 1
A Q. 12.The Government of India has implemented the
‘Right to Work’, in how many districts?
Ans. 330 districts. 1
Short Answer Type Questions (3 marks each)
U Q. 1. Explain the term ‘unemployment’. What is
disguised unemployment?
[Board Term-I, NCT-2014]
Ans. (i) Unemployment : When a person is willing to
work at the prevailing wage rate but fails to get a
job, it is called unemployment.
(ii) Disguised unemployment : When more people
are working than required, it is called disguised
unemployment. Even if we remove a few people
from the job, the process of production will not be
affected. 1½ + 1½ = 3
U Q. 2. Explain the concept of under employment taking
example from some non-agricultural field.
[Board Term-I, KVS-2014]
Ans. The under employment can happen in other
sectors, for example :
(i) There are thousands of casual workers in the
service sector in urban areas who search for daily
employment.
(ii) They are employed as pointers, plumbers, repair
persons and other doing odd jobs. Many of them
don’t find work every day.
(iii) Similarly, we see other people of the service sector
on the street pushing a cart or selling something
where they may spend the whole day but earn
very little. 1 × 3 = 3
A Q. 3. Explain the ways by which more employment
can be created in a country like India.
[Board Term-I, (580020, 23, 31), 2011]
Ans. The ways by which more employment can be
created in a country like India are :
(i) If more dams are built and canal water is provided
to all the small farmers, a lot of employment can be
generated in agriculture sector.
(ii) Providing cheap credit facilities and crop insurance
can result in more employment.
(iii) More money should be spent in transport
and storage, because then more people can be
employed.
(iv) The government/banks can provide loan at cheap
rates to improve irrigational facilities.
(v) Technical training, vocational guidance to
unemployed youth for self employment.
(Any three) 1 × 3 = 3
U Q. 4.What is GDP? Explain with example the method
of calculating Gross Domestic Product.
[Board Term-I, (3K), 2013, (58), 2012]
OR
U Explain the term G.D.P. Why are only ‘final goods
and services’ counted in G.D.P.?
[Board Term-I, (580018, 22, 24, 36), 2011]
Ans. G.D.P. is the sum of the money value of final goods
and services produced in each sector during a
particular year within domestic territory of a
country.
Only final goods and services are counted in
G.D.P. because :
(i) The value of final goods already includes the value
of all intermediate goods.
(ii) To count the value of the flour and wheat separately
is therefore not correct because then we would be
counting the value of the same things a number of
times. 1+2=3
U Q. 5. Why is NREGA also called the right to work?
Explain. [Board Term-I, (X30T4XE), 2014]
OR
U Explain the role of NREGA in creating
employment for the people in India.
[Board Term-I, (R9UJGYG), 2014]
OR
A Why is NREGA also called the “Right to Work”?
Mention any three reasons for it.
[Board Term-I, (34), 2012]
OR
A In your opinion, how far is it correct to say that
NREGA 2005 as “Right to Work”?
[Board Term-I, (55), 2012]
Ans. NREGA is also called Right to Work :
(i) It has been implemented in 200 poorest of the
poor districts of India.
(ii) NREGA guarantees 100 days of assured work to
the people who are able and in need of work.
(iii) If the government fails to provide work,
it will provide unemployment allowances to the
people.
(iv) One-third of the jobs are reserved for women.
(Any three) 1×3=3
(CBSE Marking Scheme, 2012)
U Q. 6. State the objectives of NREGA 2005.
[Board Term-I, NCT 2014)
OR
U Explain the objectives of implementing the
MGNREGA 2005. [Board Term-I, (37, 39), 2012]
OR
U Explain the objectives of Mahatma Gandhi
National Rural Employment Guarantee Act 2005.
[Board Term-I, (52), 2012]
OR
U What has been the role of MGNREGA in creating
employment for the people in India?
[Board Term-I, (45), 2012]
Ans. Objectives of implementing MGNREGA 2005 :
(i) To give employment opportunities to the people
who live in rural areas.
(ii) To raise the standard of living of the people.
(iii) To implement the right to work. 1 × 3 =3
(CBSE Marking Scheme, 2012)
Long Answer Type Questions (5 marks each)
U Q. 1. Explain the meaning of disguised unemployment
with the help of any two suitable examples.
[Board Term-I, (B1), 2010]
Ans. Disguised unemployment : When the people
are working in any field for more than their
labour necessity. For example, where the need
is for 4 labourers and 7 labourers are working, it
means 3 labourers are suffering from disguised
unemployment or under-employment. In such a
case, the production will not be affected even if the
three extra labour do not work.
Examples :
(i) In rural India, agricultural field is suffering from
this type of unemployment. More than half of the
workers in the country are working in primary
sector mainly in agricultural activities producing
only a quarter of G.D.P.
(ii) In urban areas, workers like painters, plumbers,
repair persons, cart drivers do not find work every
day or for the whole day. 3 + 2 = 5
A Q. 2. Explain measures that can be adopted to remove
disguised unemployment in the agriculture
sector. [Board Term-I, (580021, 27), 2011]
Ans. When more people are compelled to do a job which
only few can do, then such a situation is termed as
disguised unemployment.
(i) One or two members of farmer’s family can work
in the farms of big landlord and earn wages.
(ii) Two or three members of such a family may move
to work in a nearby factory and earn more money.
(iii) More irrigational facilities can be provided to grow
two or three crops in a year.
(iv) By opening processing units of agriculture
production, more employment opportunities can
be created.
(v) Technical, vocational training can reduce the
unemployment of farmers. 1 × 5 = 5
U Q. 3. Why is agriculture the most labour absorbing
sector in India? How does disguised
unemployment make it worse? Explain with an
example. [Board Term-I, (R9UJGYG), 2014]
Ans. (i) Agriculture is the most labour absorbing sector in
India because the secondary and tertiary sectors are
still failed to provide more employment opportunities
as to a majority of the Indian people, so the people
are forced to engage themselves in agriculture.
(ii) Disguised unemployment it generally found in
agriculture sector. People engaged in farming are
generally more than required. Though it seems
that they are working in the cultivation of land, but
actually they are partly employed.
(iii) For example, A farmer who has a land of 3 hectare
which require only 2 persons for farming related to
work but all the 7 family members are engaged in
it. If 5 persons out of them are withdrawn from the
job, the total production will not fall. Therefore, 5
persons will come under the category of disguised
unemployment. 2 + 3 = 5
A Q. 4. What is GDP? Explain the process to calculate
GDP. [Board Term-I, (82), 2012]
Ans. (i) Gross Domestic Product or GDP is the value
of all final goods and services produced within a
country, during a particular year.
(ii) The sum of production in the three sectors gives
us the GDP (primary + secondary + tertiary). The
money values of goods and services should be
added rather than adding up the actual numbers.
The value of final goods alone should be added as
the value of intermediate goods is already included
in the value of final goods. This mammoth task
of measuring GDP is undertaken by the Central
Government Ministry.
This organization collects information relating to
the total volume of goods and services and their
prices and then estimates the GDP. 2 + 3 = 5
U Q. 5. How can we create more employment in
secondary and tertiary sectors in rural India?
[Board Term-I, (45, 47), 2012]
Ans. (i) We can create more jobs in the secondary sector
by promoting industries such as dal mills.
(ii) By promoting cottage and handicraft industries to
employ the villagers. By establishing processing of
vegetables and fruits units.
(iii) Government can invest in cold storages.
(iv) Services like transportation and communication
must be promoted to generate employment.
(v) Building Multi-purpose Projects can create
employment.
U Q. 6. How can we create more employment opportunities
in urban areas? Explain with examples.
[Board Term-I, (72), 2012]
OR
U Describe the various ways in which government
can create employment opportunities for the people
of India. [Board Term-I, (Set-6HTQGTF), 2016-17]
Ans. (i) The government can spend some money or
banks can provide loans to construct well, etc.,
which will reduce the dependency of farmers
on rains, and they will be able to grow two
crops a year.
(ii) Construction of Dams and Canals can lead to
lot of generation of employment in agricultural
sector itself.
(iii) If government invests some money
on transportation and storage of crops or
makes better rural roads, it can provide
productive employment not just to farmers but
also to other who are in services like transport
or trade.
(iv) If local banks give credits at reasonable rates
to the small and marginal-farmers, they will be
able to buy necessary inputs for their crops in
time.
(v) Another way to solve this problem is to identify,
promote and locate industries and services in the
semi-rural areas where a large number of people
may be employed. Example, Many farmers
grow arhar and chickpea, for them a dal-mill
to procure and process these & sell in the cities;
opening a cold storage will give an opportunity
to the farmers to store their produce like potato,
& onion and sell them at good price; villagers
near forests can start with honey collection, etc.
(vi) To improve health situation we need health
centres, hospitals & for that doctors, nurses,
workers.
(vii) Similarly to provide education to all children
we would need lot of schools which can also
generate employment.
(viii) Tourism : Every state or region has the potential
for increasing the income and employment for
people in that area. This can also be done by
promoting tourism or regional craft industry.
(ix) New services like IT are also creating jobs.
All these are the long term projects but
government also has certain short term projects
for people: NREGA-2005. (Any five) 1×5=5
(CBSE Marking Scheme 2016)
A Q. 7. Describe the estimates of Planning Commission
to create jobs in tourism and education?
[Board Term-I, (63), 2012]
Ans. Regarding jobs in Schools :
(i) Planning commission estimates that nearly 20 lakh
jobs can be created in education sector alone.
(ii) For more children to attend school, more teachers
and more infrastructures will be required.
Regarding jobs in Tourism :
(i) Planning commission estimates that nearly 35 lakh
jobs can be created in tourism sector.
(ii) Regional crafts and Cottage industry can also
create jobs.
(iii) New services such as IT also are job generators.
TOPIC-3
Division of Sectors as Organized and Unorganized
Very Short Answer Type Questions (1 mark each)
U Q. 1. Who has the ownership of the assets in the public
sector?
Ans. Government. 1
A Q. 2. How does public sector help in the development
of a country? [Board Term-I, 2015]
Ans. Public sector invests in key and basic industries
as health, education, defence where private
sector cannot invest. 1
[CBSE Marking Scheme, 2015]
A Q. 3. “What is the intention of the government in
raising money through taxes?”
[Board Term-I, Set-E, DDE-2015]
Ans. Government raises money through taxes and
other ways to meet expenses on the services
rendered by it. 1
A Q. 4. What does comprise the unorganized sector in
rural areas? [Board Term-I, Set-XOKG2SB, 2015]
Ans. Agriculture. 1
Short Answer Type Questions (3 marks each)
U Q. 1. Why is there an urgent need to protect workers in
the unorganized sector? Explain.
[Board Term-I, (CB4QHT1), 2016-17]
Ans. (i) They are paid low salaries.
(ii) Their jobs are not secure.
(iii) They have no retirement and medical benefits.
(iv) They are often exploited. (Any three) 1×3=3
(CBSE Marking Scheme, 2016)
U Q. 2. What are the differences in the employment
conditions between organized and unorganized
sectors of the economy?
OR
U In what three ways is organized sector better than
unorganized sector? Explain.
Ans. Organized sector :
(i) Workers in the organized sector enjoy security of
employment.
(ii) Workers get several benefits from the employers
like paid leave, provident fund, gratuity, etc.
(iii) Workers work for a fixed number of hours. If they
work more, they have to be paid overtime by the
employer.
Unorganized sector :
(i) Employment is subject to high degree of insecurity.
(ii) There is no provision for paid leave, holidays, etc.
(iii) Workers get less wages and there is no provision
for overtime payment. 1½ + 1½=3
A Q. 3. Why do people prefer to work in an organized
sector? Explain.
[Board Term-I, Set-6AP67LB, 2015]
Ans. Advantages of organized sector :
(i) People enjoy security of employment.
(ii) Work for fixed hours.
(iii) It they work more, they get overtime allowances.
(iv) Paid leaves, payment during holidays, medical
benefits, safe working environment and pension
after retirement. (Any three) 1 × 3 =3
(CBSE Marking Scheme, 2015)
A Q. 4. How can the workers in the unorganized sector
be protected? Explain.
[Board Term-I, (580012, 28, 33, 38), 2011]
Ans. In the unorganized sector, mostly landless
agricultural labourers, small and marginal
farmers, share croppers and artisans are included.
These workers can be protected by the following
ways:
(i) Farmers need to be supported through adequate
facility for timely delivery of seeds, agriculture
inputs, credit, storage and marketing outlets.
(ii) In urban areas, casual workers need government’s
support for procuring raw material.
(iii) Small scale industries also need support for
procuring raw material and marketing of the
goods. 1 × 3 = 3
U Q. 5. Why is agriculture an activity of unorganized
sector in India? Explain. [Board Term-I, (38), 2012]
OR
U Agriculture is an unorganized sector in India.
Do you agree with this statement? Justify your
answer with suitable examples.
[Board Term-I, (40), 2012]
Ans. In agricultural activities, people are exploited
like landless labourers.
(i) Their income level is low.
(ii) There is no job security.
(iii) Agriculture is seasonal in nature and there is no
fixed pay.
(iv) No other benefits such as pension, medical
facility, paid leave, Provident Fund, safe
environment, etc., are available.
(Any three) 1 × 3 = 3
(CBSE Marking Scheme, 2012)
Long Answer Type Questions (5 marks each)
A Q. 1. “Workers are not exploited in organised sector”.
Do you agree with the statement? Explain reasons
in support of your answer.
[Board Term-I, (38), 2012]
OR
A What is unorganized sector? Describe the working
procedure of this sector.
[Board Term-I Outside Delhi 2008]
OR
A Workers are exploited in an unorganized sector.
Do you agree with this statement? Justify your
answer with five relevant points.
[Board Term-I, (39, 40), 2012]
OR
A Define the term ‘Unorganized Sector’. Mention
any six disadvantages of working in this sector.
[Board Term-I, (70), 2012]
Ans. Unorganized Sector : Unorganized sector is
a sector which has small and scattered units
largely outside the control of the government.
Yes, workers are exploited in the unorganized
sector. Reasons are as follows :
(i) There are no rules and regulations followed.
(ii) Jobs are low paid and often not regular.
(iii) No provision of overtime is there and no paid
holidays or leave is given.
(iv) Employment is not secure. People can be asked
to leave without reason.
(v) Some kind of work is seasonal in nature and
temporary workers are employed. They become
unemployed after the season is over.
(vi) No other facilities like Provident Fund, Gratuity
or sick leave are given.
(vii) Working conditions are often poor. No
allowances are given.
(viii) No medical benefit is given.
(Any four) 1 + 4 = 5
(CBSE Marking Scheme 2012)
A Q. 2. Explain the meaning of disguised unemployment
with the help of any two suitable examples.
[Board Term-I, (B1), 2010]
Ans. Disguised unemployment : When the people
are working in any field for more than their
labour necessity. For example, where the need is
for 4 labourers and 7 labourers are working, it
means 3 labourers are suffering from disguised
unemployment or under-employment. In such a
case, the production will not be affected even if the
three extra labours do not work.
Examples :
(i) In rural India, agricultural sector is suffering from
this type of unemployment. More than half of the
workers in the country are working in primary
sector mainly in agricultural activities producing
only a quarter of G.D.P.
(ii) In urban areas, workers like painters, plumbers,
repair persons, cart drivers do not find work every
day or for the whole day. 5
U Q. 3. Differentiate between organised and unorganized
sector. [Board Term-I, NCT-2014]
OR
U Compare the employment conditions prevailing
in the organized and the unorganized sector?
[Board Term-I, DDE-2015, Set-E]
[Board Term-I, Set-C5JWEVD, 2015]
Ans. Organized Sector :
(i) It is the one where the terms of employment are
regular and 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, etc.
(iii) It is called organized because it has some process
and procedures.
(iv) Workers in the organized sector enjoy security of
employment. They are expected to work only a fix
number of hours. If they work more, they have to
be paid overtime by the employer.
(v) They also get several other benefits from the
employers like paid leave, payment during
holidays, provident fund, pensions, gratuity,
medical benefits, etc.
Unorganized Sector :
(i) These are small and scattered units which are
largely outside the control of the government.
(ii) There are rules and regulations but these are not
followed.
(iii) Jobs here are low-paid and often not regular.
(iv) Employment is not secure as people can be asked
to leave without any reason.
(v) There is no provision for overtime, paid leave,
holidays, leave due to sickness, etc.
Examples :
(i) In a developing country, the government has
to take the responsibility for the provision of
basic services for example, hospitals, educational
institutions, post and telegraph services, police
stations, courts, village administrative offices,
municipal corporations, defence, transport, banks,
insurance companies, etc.
(ii) The development of agriculture and industry
leads to the development of services such as trade,
transport, storage, etc. Greater the development of
the primary and secondary sectors, more would be
the demand for such services.
(iii) As income levels rise, certain sections of people
start demanding many more services, such as
eating out, tourism, shopping, private hospitals;
private schools, professional training, etc. This
change was quite sharp in cities, especially in big
cities.
(iv) Over the past decade or so, certain new
services, such as those based on information
and communication technology have become
important and essential.
(v) Government policy of Privatisation has also led to
growth of this sector.
(vi) A large number of workers are engaged in services,
such as small shopkeepers, repair persons,
transport persons, etc.
(vii) However, the entire sector has not grown. Large
numbers of people engaged as construction
workers, maid, peons, small shopkeepers, etc., do
not find any change in their life.
(Any five) 1 × 5 = 5
Q. 1. How are the three sectors of the economy different
from each other? Explain.
[Board Term-I, 2016-17 (NLTM8TU)]
Ans. Primary Sector : Activities undertaken by using
natural resources, e.g., forestry, agriculture,
fishing, etc.
Secondary Sector : Activities includes various
manufacturing activities and adds utility to
primary sector, e.g., Cotton-cloths, iron ore-Steel,
etc.
Tertiary Sector : Includes all such activities
which supports primary and secondary sector
by providing services, e.g., transportation, etc.
(CBSE Marking Scheme, 2016) 5
Q.2. 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.
[Board Term-I, (H3), 2013, (60), 2012]
OR
“There are several things needed by the society as
a whole.” In the light of this statement, explain as
to who can provide them at a reasonable cost, the
private or the public sector and why?
[Board Term-I, (35), 2012]
OR
Identify any five activities where the government
must spend for the welfare of the people and
why? [Board Term-I, (56), 2012]
Ans. Society needs many things as a whole which
the private sector is not able to provide at a
reasonable cost.
The reasons are as follows :
(i) Some of them need spending large sums of
money which is beyond the capacity of the
private sector.
(ii) The private sector charges are very high whereas
the government will charge reasonably.
(iii) Without government’s encouragement and help,
the private sector can’t enter into such services.
Areas where the government must spend for
the welfare of the people are :
(i) Providing health and education facilities by
building proper schools.
(ii) Providing proper food to tackle the problem of
malnourishment.
(iii) Government also needs to pay attention to the
aspects of human development such as safe
drinking water, housing, and taking care of the
poorest.
(iv) Safe drinking water must be made available to all.
(v) Housing facilities must be provided to the
homeless.
(vi) It is the duty of the Government to take care of
ignored and backward regions of the country
to bring balanced growth, development in the
entire country. 1×5=5
(CBSE Marking Scheme, 2013)
Q. 3. “The declining share of agriculture in the Gross
Domestic Product (G.D.P.) is a matter of serious
concern in India”. Support the statement with any
five reasons.[Board Term-I, (NLTM8TU), 2016-17]
Ans. (i) Indian farmers are facing challenge from
international competition.
(ii) Government is reducing investment in
agricultural sector, especially irrigation sector.
(iii) Subsidy in fertilizers has decreased, leading to a
rise in cost of production.
(iv) Reduction in import duties on agricultural
products.
(v) Farmers are withdrawing their investment
from agriculture causing a downfall in the
employment in agriculture.
(CBSE Marking Scheme, 2016) 5
Q. 4. “Agriculture had been the backbone of the Indian
economy. But the declining share of agriculture
in the GDP is now a matter of serious concern.”
Explain the meaning of this statement.
[Board Term-I, (C2), 2010]
Ans. Agriculture is the backbone of the Indian
economy because :
(i) In India, about 63% people were engaged in
agriculture sector in 2001.
(ii) Share in GDP was more than 40% in 1973.
(iii) Raw materials for secondary sectors are mostly
supplied by agriculture.
But now, the share of agriculture is declining in
the GDP year by year. So, it is a matter of serious
concern for all.
(iv) Share of agriculture in the G.D.P. has declined from
44% to 24% during 1973 to 2003.
(v) The primary sector continues to be the largest
employer even in 2000 but the production has not
increased by this rate. 1 × 5 =5
SECTORS OF THE INDIAN ECONOMY [ 311
Q. 1. Describe the provisions of “National Rural
Employment Guarantee Act’’, 2005.
[Board Term-I, (68) 2012]
Ans. Provisions of NREGA 2005 are :
(i) It provides 100 days assured employment every
year to each rural household.
(ii) One-third of the proposed jobs are reserved for
women.
(iii) If an applicant is not employed within 15 days he/
she is entitled to a daily unemployment allowance.
(iv) The governments have to establish Central
Employment Guarantee Funds and State
Employment Guarantee Funds for the
implementation of the scheme.
(v) The scheme is to be extended to 600 districts
(Any three) 1×3=3
(CBSE Marking Scheme 2012)
Q. 2. How to create more employment in rural areas?
Explain with the help of five suitable examples.
[Board Term-I, (33), 2012]
OR
How can more employment opportunities be
created in the rural areas?
[Board Term-I, (580016, 32, 35, 44), 2011, (C1), 2010]
Ans. (i) Government can spend money or banks can
provide loan for irrigation.
(ii) Suppose one hectare of wheat can provide
employment to the people for 50 days. So, the
number of members can be increased.
Examples :
(i) Construction of new dams and canals.
Constructing dams, canals or digging wells
in villages. On one hand, this would serve the
needs of farmers for irrigation and on the other,
people engaged in such construction activity
would gain employment.
(ii) Development in transport facility by government
and creating storage facilities in rural areas.
(iii) Credit from local banks, so that crops can be
grown every year.
(iv) Agro-based industries can be set up in rural
areas or semi-rural belts.
(v) Making provisions for education and health services
in rural belts can also result in employments.
(Any three) 1×3=3
(CBSE Marking Scheme 2012)
qq