Sectors of the Indian Economy class 10 Economics MCQ & SAQ

Sectors of the Indian Economy class 10 Economics NCERT SOLUTION:

Q.1: Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector ______ increased to the same extent as production.

(ii) Workers in the ___________ sector do not produce goods.

(iii) Most of the workers in the _________ sector enjoy job security.

(iv) A _________ proportion of laborers in India are working in the unorganized sector.

(v) Cotton is a ___________ product and cloth is a_________ product.

(vi) The activities in primary, secondary and tertiary sectors are __________. 

 

Ans: (i) has not (ii) tertiary (iii) organized (iv) large (v) natural, manufactured (vi) interdependent    

 

 

Q.2: Choose the most appropriate answer:

(a) The sectors are classified into public and private sector on the basis of:

(b) Production of a commodity mostly through the natural process is an activity in ________ sector.

(c) GDP is the total value of __________ produced during a particular year.

(d) In terms of GDP the share of the tertiary sector in 2003 is ____________.   

 

Ans: (a) ownership of enterprise (b) primary (c) all final goods and services (d) between 50 percent and 60 percent.

 

 

Q.4: Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter.

(ii) Teacher, doctor, vegetable vendor, lawyer.

(iii) Postman, cobbler, soldier, police constable.

(iv) MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.

 

 

Ans: (i) Potter, because only the potter relates to the secondary sector.

(ii) Vegetable vendors, since only this directly helps in the production of goods.

(iii) Cobbler because only cobbler falls in the private sector.

(iv) Sahara Airlines, as this is the only private sector company in the group.    

 

 

Q.6: Do you think the classification of economic activities into primary, tertiary and secondary is useful? Explain how.

 

 

Ans: The classification of economic activities into primary, tertiary and secondary 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 sectors for smooth economic administration and development.    

 

 

Q.7: For each of the following 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: For each of the sectors mentioned in this chapter our focus should definitely be on employment and GDP. This is because growth in GDP and full employment are common goals of Five Year Plans and they also determine the size of a country’s economy. A focus on employment and GDP helps us to calculate and monitor the most important factors like: per capita income, productivity, changes in employment rate and contribution to GDP by the three sectors of the economy and thus, takes necessary steps required for the upliftment of the country’s economy as a whole.

Yes, the other issues which should be examined are -

1. balanced regional development

2. equality in income and wealth among the people of the country.

3. how to eradicate poverty

4. modernization of technology

5. self-reliance of the country

6. how to achieve surplus food production in the country.   

 

 

Q.9: How is the tertiary sector different from other sectors? Illustrate with a few examples.  

 

Ans: The tertiary sector is different from the other two sectors. This is because the other two sectors produce goods but this sector does not produce goods by itself. But the activities under this sector help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. For this reason this sector is also known as the service sector.     

 

 

Q.10: 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.   

 

 

Q.11: 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.   

   

 

Q.12: 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: No, I do not agree with the statement that the tertiary sector is not playing any significant role in the development of the Indian economy. The reasons are as follows:

1. In terms of GDP this sector emerged as the largest producing sector in India surpassing the primary and secondary sectors. In 1973, the share of the tertiary sector in GDP was about 35% which increased to more than 50% in 2003. Over the thirty years between 1973 and 2003, while production in all three sectors increased, it was the most in the tertiary sector.

2. In terms of employment also the rate of growth of employment in the tertiary sector between the same period was nearly 250%. This was negligible in the primary sector. 

 

 

Q.13: 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.

 

 

Q.14: 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. This would be clear from the following points:

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.         

 

 

Q.15: 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.

Organized Sector This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.

Unorganized Sector It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations, these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.    

 

 

Q.16: Compare the employment conditions prevailing in the organized and unorganized sectors.    

Ans:

Employment conditions in Organized Sector	Employment conditions in Unorganized Sector
1. The labor gets a regular monthly salary.	1. The labor gets daily wages.
2. In addition to the salary, workers get several other benefits like - paid leave, PF, gratuity etc.	2. Workers do not receive any allowances apart from wages.
3. The daily working hours are fixed.	3. There is no fixed number of working hours.
4. The laborers are given an appointment letter stating all terms and conditions of the job.	4. There is no such provision.
5. People enjoy the security of employment. Working conditions are also good.	5. There is no job security. working conditions are very tough.

  

 

 

Q.20: Give three examples of Public Sector activities and explain why the government has taken up them.  

Ans: The examples are:

Railways: The government has taken up it for the following reasons -

1. Only the government can invest large sums of money on a public project with a long gestation period.

2. To ensure and provide transportation at a cheap rate.   

NTPC: The government has taken up it to provide electricity at a lower rate than the actual cost of production. The aim is to protect and encourage the private sector, especially small scale industries.

AIIMS: To provide quality health services at a reasonably cheap rate was the main purpose of the government to start this.

 

 

Q.21: Explain how the Public sector contributes to the economic development of a nation.

Ans: In the following ways Public sector contributes to the economic development of a nation:

1. It promotes rapid economic development through creation and expansion of infrastructure.

2. It creates employment opportunities.

3. It generates financial resources for development.

4. It is ensuring equality of income, wealth and thus, a balanced regional development.

5. It encourages development of small, medium and cottage industries.

6. It ensures easy availability of goods at moderate rates.

7. Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services

Sectors of the Indian Economy class 10 Economics MCQ 

Question : During the period between 1973 to2003, the production has increased most in the

(a) primary sector (b) secondary sector

(c) tertiary sector (d) all the three sectors

Answer :  C

Question : GDP is the value of……….. produced during a particular year :

(a) All goods & services (b) All final goods & services

(c) All intermediate goods & services (d) All intermediate & final goods and services

Answer :  B

Question : The sectors are classified in to public and private sectors on the basis of

(a) Employment conditions (b) The nature of economic activity

(c) Ownership of enterprises (d) Number of workers employed in the enterprises

Answer :  C

Question : NREGA 2005 guarantees work for how many days in a year

(a) 100 (b) 120

(c)150 (d) 90

Answer :  A

 

Question : Which one of the following is a public sector enterprise?

(a) TISCO (b) RIL

(c) Indian Railway (d) WIPRO

Answer :  C

Question : Which was the largest producing sector in 1973?

(a) Primary sector (b) Secondary sector

(c) Tertiary sector (d) Public sector

Answer :  A

1. Which sector converts goods into goods?

(a) primary sector

(b) secondary sector

(c) unorganized sector

(d) organized sector

► (b) secondary sector

2. The economy is classified into public and private sectors on the basis of :

(a) employment conditions

(b) the nature of economic activity

(c) ownership of enterprises

(d) number of workers employed in the enterprise

► (c) ownership of enterprises

3. In which type of unemployment more people are employed than required?

(a) seasonal unemployment

(b) disguised unemployment

(c) educated unemployment

(d) all the above

► (b) disguised unemployment

4. Who carries economic activities?

(a) individuals

(b) firms

(c) government

(d) all the above

► (d) all the above

5. Which sector includes the units producing services?

(a) primary sector

(b) secondary sector

(c) tertiary sector

(d) all the above

► (c) tertiary sector

6. Primary sector is related to

(a) agriculture

(b) dairy, forestry

(c) fishing, mining

(d) all the above

► (d) all the above

7. Which of the following types of activities are covered in the secondary sector?

(a) It generates services rather than goods.

(b) Natural products are changed through manufacturing.

(c) Goods are produced by exploiting natural resources.

(d) It includes agriculture, forestry and dairy.

► (b) Natural products are changed through manufacturing.

8. Manufacturing sector is associated with

(a) primary sector

(b) secondary sector

(c) tertiary sector

(d) private sector

► (b) secondary sector

9. Manufacturing units in unorganized sector are :

(a) not subject to government regulations

(b) subject to government regulations

(c) subject to central bank’s regulations

(d) none of the above

► (a) not subject to government regulations

10. In which sector activities are not guided by profit motive?

(a) organized sector

(b) public sector

(c) private sector

(d) unorganized sector

► (b) public sector

11. Production of a commodity through exploitation of natural resources is an activity in the

(a) primary sector

(b) secondary sector

(c) tertiary sector

(d) Information Technology sector

► (a) primary sector

12. Information and communication technology is associated with

(a) primary sector

(b) secondary sector

(c) tertiary sector

(d) none of the above

► (c) tertiary sector

13. Workers in this sector do not produce goods :

(a) tertiary sector

(b) secondary sector

(c) primary sector

(d) none of the above

► (a) tertiary sector

14. As per NREGA 2005 (National Rural Employment Guarantee Act 2005) the number of days of employment guaranteed by government is

(a) 100 days

(b) 80 days

(c) 150 days

(d) 120 days

► (a) 100 days

15. On which of the following basis, the sectors are classified into public and private sectors?

(a) Employment conditions

(b) The nature of economic activity

(c) Ownership of enterprises

(d) Number of workers employed in an enterprise

► (c) Ownership of enterprises

16. Which of the following types of activities are covered in the secondary sector?

(a) It generates services rather than goods.

(b) Natural products are changed through manufacturing.

(c) Goods are produced by exploiting natural resources.

(d) It includes agriculture, forestry and dairy.

► (b) Natural products are changed through manufacturing.

17. Choose the correct meaning of organized sector.

(a) It covers those enterprises where the terms of employment are not regular.

(b) It is outside the control of the government.

(c) Jobs are not regular.

(d) It provides low salaries.

► (a) It covers those enterprises where the terms of employment are not regular.

18. The service sector includes activities such as

(a) agriculture, dairy, fishing and forestry

(b) making sugar, gur and bricks

(c) transport, communication and banking

(d) none of these

► (c) transport, communication and banking

19. Disguised Unemployment means a situation where people are:

(a) Unemployed

(b) Employed but earning less salary

(c) Employed but productivity is nil

(d) Unemployed for a short period of time

► (c) Employed but productivity is nil

20. Which one of the following economic activities is not in the tertiary sector?

(a) Banking

(b) Bee keeping

(c) Teaching

(d) Working in a call center

► (b) Bee keeping

21. Which of the following Acts would not apply to a company like TISCO?

(a) Minimum Wages Act

(b) National Rural Employment Guarantee Act

(c) Factories Act

(d) Payment of Gratuity Act

► (b) National Rural Employment Guarantee Act

22. The motive of public sector enterprises is:

(a) Profit making

(b) Entertainment

(c) Social welfare and security

(d) None of the above

► (c) Social welfare and security

23. Which of the following is also known as disguised employment?

(a) Over-employment

(b) Factory employment

(c) Under-employment

(d) Unemployment

► (c) Under-employment

24. Which of the following is not applicable for a worker, who works in the organized sector?

(a) She gets a regular salary at the end of the month

(b) She is not paid for leave

(c) She gets medical allowance

(d) She got an appointment letter stating the terms and conditions of work when she joins work.

► (b) She is not paid for leave

25. Workers in agricultural sector are

(a) underemployed

(b) over employed

(c) unemployed

(d) None of these

► (a) underemployed

26. Agriculture, dairy farming are activities belonging to which of the following sectors?

(a) Primary

(b) Secondary

(c) Tertiary

(d) Scientific technology

► (a) Primary

27. Which of the following statements is true in respect of the Public Sector?

(a) Big companies own most of the assets

(b) Government owns the assets

(c) A group of people owns most of the assets

(d) An individual owns most of the assets

► (b) Government owns the assets

28. What is meant by GDP?

(a) Gross Dairy Product

(b) Gross Domestic Product

(c) Great Development Project

(d) Great Domestic Product

► (b) Gross Domestic Product

29. Which of the following is not an activity of the unorganised sector?

(a) teacher taking a class in Kendriya Vidyalaya

(b) a nurse working in a Government hospital

(c) a farmer irrigating his field

(d) a clerk working in the post office

► (c) a farmer irrigating his field

30. Which of the following activities is not the activity of the Primary Sector?

(a) Milking

(b) Fishing

(c) Making of sugar

(d) Farming

► (c) Making of sugar

31. Which one of the following countries has the largest size of illiterate population in the world?

(a) India

(b) Japan

(c) France

(d) Germany

► (a) India

32. Which of the following economic activities does not come under the primary sector?

(a) Fishing

(b) Farming

(c) Mining

(d) Banking

► (d) Banking

33. In terms of G.D.P., the share of tertiary sector in 2003 was:

(a) between 20 to 30%

(b) between 30 to 40%

(c) between 50 to 60%

(d) above 70%

► (c) between 50 to 60%

34. The money value of all final goods and services produced within a country during a particular year is called:

(a) Gross domestic product

(b) Net domestic product

(c) National product

(d) Production of secondary sector

► (a) Gross domestic product

Sectors of the Indian Economy class 10 Economics SAQ

On what basis, the sectors are classified into public and private sectors ? [CBSE Sept. 2010, 2012, 14]

Ans. Ownership of enterprises

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

Ans. 2005 –

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

Ans. Private Sector

 What is the main motive of Private sector enterprises ? [CBSE Sept. 2011, 2012]

Ans. Profit making

What will happen if the government fails to provide 100 days employment under NREGA ? [CBSE Sept. 2012}

Ans. Unemployment allowance will be given.

What is underemployment ? Explain with an example. [CBSE Sept. 2013]

Ans. (i) It is a situation in 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.

Q-2. 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.

.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.

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 the primary sector is that it forms the base for all other activities.

What is GDP ? Who is responsible for Q.8. collecting data for the GDP in India ?[CBSEComp. (O) 2008,14]

Ans. It 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.

What is disguised unemployment ? Ans. Explain. [CBSE 2010 (D), Sept. 2010]

Or

How far is it correct to say that disguised unemployment can also be called underemployment ? Explain. [CBSE 2012]

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.

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.

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.

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

Ans. (i) The 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.

 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.

 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.

Sectors of the Indian Economy class 10 Economics long question

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

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 the 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.

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.

(ili) It provides goods to the people like cloth, sugarcane, iron and steel.

(iv) The Secondary sector promotes the development of the Primary and the Tertiary sectors

Suggest some ways which can be helpful in creating employment in rural areas. [CBSE Sept. 2010, 2011]

Or

What steps should be taken to create more employment ? Expain. [CBSE Sept. 2010, 2011]

How to create more employment in rural areas ? Explain with examples. [CBSE Sept. 2011,2012]

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 be 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.

What are the advantages of working in an organized sector? [CBSE Sept. 2011] 

Or

What 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.

 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.

 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.

 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.

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.

 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.

What are the disadvantages of working in an unorganized sector ? Suggest any two ways to protect the workers working in an unorganized sector.

Or

Why is working in an unorganized sector not considered secure ? [CBSE 2013] 

Ans. (i) The unorganized sector is characterized by small and scattered units which are largely outside the -control of the government.

(ii) Workers working in an unorganized sector get less wages.

(iii) There is no provision for overtime, paid leave, holidays, leave due to sickness, etc.

(iv) Employment is subject to a high degree of insecurity.

(v) A large number of people doing small jobs such as selling on the street or doing repair work comes under the unorganized sector.

Suggestions :

(i) Expanding the base of the organized sector.

(ii) Spread of Education.

Explain the role of the public sector. Suggest any two ways to improve the working of the public sector or government. [CBSE Sept. 2012]

OR

Why is the public sector required to provide certain things at a reasonable cost ? [CBSE 2013]

Or

Identify any five activities where the government must spend for the welfare of the people and why. [CBSE 2012]

Or

How far is it correct to say that several services which cannot be provided by 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.

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.

Why is agriculture an activity of the unorganized sector in India ? Explain. [CBSE 2012]

Or

Agriculture is an activity of the unorganized sector in India. Do you agree with this statement ? Justify your answer with suitable examples. [CBSE 2012]

Ans. (i) There is no fixed number of working hours. The laborers have to work normally for 10-12 hours without paid overtime.

(ii) Agricultural laborers get no other allowances apart from daily wages.

(iii) Agricultural laborers have no job security.

(iv) Government rules and regulations to protect the laborers are not followed.

(v) They are often exploited and not paid a fair wage.

“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 .

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.