HBSE 10th Class Social Science Important Questions Economics Chapter 2 Sectors of Indian Economy

Haryana State Board HBSE 10th Class Social Science Important Questions Economic Chapter 2 Sectors of Indian Economy Important Questions and Answers.

Haryana Board 10th Class Social Science Important Questions Economic Chapter 2 Sectors of Indian Economy

Multiple Choice Questions

Important Questions Sectors Of Indian Economy HBSE 10th Class Question 1.
When we produce a good by exploiting natural resources, it is an activity of the sector.
(a) Secondary
(b) Tertiary
(c) Primary
(d) All of these.
Answer:
(c) Primary

Economics Chapter 2 Class 10 Important Questions HBSE Question 2.
Which one of the following occupations is not associated with primary sector?
(a) Basket weaver
(b) Gardener
(c) Beekeeper
(d) Priest.
Answer:
(d) Priest.

Ch 2 Sectors Of Indian Economy HBSE 10th Class Question 3.
Which one of the following is an activity of the secondary sector?
(a) Manufacturing
(b) Fishing
(c) Beekeeping
(d) Lumbering.
Answer:
(a) Manufacturing

Question 4.
Which one of the following economic activities is not in the tertiary sector?
(a) Banking
(b) Gardener
(c) Teaching
(d) Working in a call centre.
Answer:
(b) Gardener

Question 5.
WTiich one of the following is an example of tertiary sector?
(a) Gardening
(b) Farming
(c) Banking
(d) Mining.
Answer:
(c) Banking

Question 6.
Communication is an activity of-
(a) Tertiary sector
(b) Primary sector
(c) Secondary sector
(d) None of these.
Answer:
(a) Tertiary sector

Question 7.
The other.name of tertiary sector is –
(a) Industrial sector
(b) Governmental sector
(c) Service sector
(d) Primary sector.
Answer:
(c) Service sector

Question 8.
The task of collection of data in all the three sectors of the economy is done by which of the following organisations-
(a) NSSO
(b) UNDP
(c) WTO
(d) WHO.
Answer:
(a) NSSO

Question 9.
Which of the following is the most appopriate meaning of underemployment?
(a) Workers are not paid for their work
(b) Workers are working less than what they are capable of doing
(c) Workers are working in a lazy manner
(d) All of these.
Answer:
(b) Workers are working less than what they are capable of doing

Question 10.
When more people are engaged in a work than required-what does it indicate?
(a) Unemployment
(b) Overemployment
(c) Disguised Unemployment
(d) None of these.
Answer:
(c) Disguised Unemployment

Question 11.
When was MNREGA implemented ?
(a) 2005
(b) 2002
(c) 2011
(d) 2013
Answer:
(a) 2005

Question 12.
Which section has the provision of paid
(a) Unorganised sector
(b) Organised sector
(c) Primary sector
(d) None of these.
Answer:
(b) Organised sector

Question 13.
The sector is characterised by small and scattered units which are largely outside the control of the government.
(a) Primary
(b) Unorganised
(c) Organised
(d) Secondary.
Answer:
(b) Unorganised

Question 14.
Which one of the following is not an example of the Public Sector ?
(a) Railways
(b) Reliance Industries limited
(c) Post offices
(d) Army.
Answer:
(b) Reliance Industries limited

Question 15.
The motive of Public sector enterprises is
(a) Entertainment
(b) Profit making
(c) Social welfare and security
(d) None of these.
Answer:
(c) Social welfare and security

Fill in the Blanks

1. The activities which are undertaken with the objective to earn money are called …………
2. …………….. of the economy involves conversion of natural resources into primary products.
3. Secondary sector covers activities in which natural products are changed into other forms through …………
4. Primary sector was most important sector in initial stages of …………..
5. Secondary sector is also called …………. sector.
6. National Institution for Transforming India was formed on ……………
7. …………… covers those enterprises or places of work where workers are given regular employment.
8. Protection and support to workers in the ………….. sector is necessary for economic and social development.
9. ……………. enterprises are owned by government.
10. ………….. targets the poor people of rural areas who suffer from poverty.
Answer:
1. Economic activities
2. Primary sector
3. manufacturing
4. development,
5. industrial
6. 1st January 2015
7. Organised sector
8. unorganized
9. Public sector
10. MNREGA.

Very Short Answer Type Questions

Question 1.
Mention some economic activities which come under the primary sector.
Answer:
Agriculture, animal husbandry, dairy, fishing, mining, forestry, poultry etc.

Question 2.
Why is the primary sector called the agriculture-related sector?
Answer:
The primary sector is called agriculture-related sector because most of the natural products have been obtained from agriculture, dairy, fishing, and forestry.

Question 3.
What do you mean by secondary sector activities?
Answer:
The secondary sector covers all those activities, in which, natural products are changed into other forms, through ways of manufacturing.

Question 4.
Why is the secondary sector called the industrial sector?
Answer:
The secondary sector is called the industrial sector because this sector is associated with different kinds of industries.

Question 5.
Why is the tertiary sector called the service sector?
Answer:
The tertiary sector is called the service sector because it generates services, rather than goods.

Question 6.
Name any four tertiary sector activities.
Answer:

• Transport
• Communication
• Banking
• Trade.

Question 7.
Services such as transport, banking and insurance come under which sector?
Answer:
Tertiary Sector.

Question 8.
Production of a commodity mostly from natural process in an activity of which sector?
Answer:
Primary Sector.

Question 9.
Name the sector in which the government owns most of the assets and provides all the services?
Answer:
Public Sector.

Question 10.
Name the sector which continued to be the largest employer even in the year 2000?
Answer:
The primary sector mtinued to be the largest employer even in the year 2000.

Question 11.
ATM is an exami of which sector?
Answer:
ATM is an example of Tertiary sector.

Question 12.
What do you mean by GDP?
Answer:
The sum of production in the three sectors is called the Gross Domestic Product (GDP). It is the value of all final goods and services produced within a country, during a particular year.

Question 13.
How is GDP calculated?
Answer:
GDP is the sum total of gross value added of all the firms in the economy. If there are N firms in the economy, each assigned with a serial number from 1 to N, them GDP = Sum total of the gross value added of all the firms from 1 to N in the economy.

Question 14.
Which goods and services are calculated in total production?
Answer:
The value of final goods and services are calculated in total production.

Question 15.
What are intermediate goods?
Answer:
The goods, which are used in producing final goods and services, are called intermediate goods.

Question 16.
What are final goods?
Answer:
Those goods, which are used for final consumption, or in capital formation, are called final goods.

Question 17.
Which sector has become the most important sector from the point of view of total production and employment?
Answer:
The secondary sector.

Question 18.
Which services develop with the development of agriculture and related sectors?
Answer:
The services, like transportation, trade and storage develop with the development of agriculture and related sectors.

Question 19.
What is disguised unemployment?
Answer:
It is a type of hidden unemployment, where people seem to be working, but they do not contribute to the actual production.

Question 20.
Suggest any one way to create employment opportunities in rural areas?
Answer:
Employment can be generated by 1. identifying, promoting and locating industries and services in semi-rural areas. 2. Bank loan facility for agri sector is cheaper.

Question 21.
Classify economy on the basis of the nature of the activity.
Answer:
The economy is classified on the basis of economic activities into three sectors namely- the primary sector, secondary sector and tertiary sector.

Question 22.
What is meant by the secondary sector?
Answer:
The sector that includes activities in which natural products are changed into other forms through manufacturing is called the secondary sector.

Question 23.
Name the sector where seasonal and disguised unemployment is most prevalent.
Answer:
Primary sector.

Question 24.
What is meant by primary sector?
Answer:
When we produce a good by exploiting natural resources. It is an activity of the primary sector.

Question 25.
Which type of work will be given preference under Mahatma Gandhi National Rural Employment Guarantee Act, 2005?
Answer:
The types of work, that would help to increase production in the future, from land, will be given preference under Mahatma Gandhi Nation, rural Employment Guarantee Act, 2005.

Question 26.
What are the two sectors on the basis of ownership on assets?
Answer:
(i) Public sector
(ii) Private sector.

Question 27.
What is public sector?
Answer:
The sector, in which, government owns most of the assets, is called public sector.

Question 28.
Give two examples of public sector.
Answer:
(i) LIC
(ii) BSNL.

Question 29.
Give any two examples of private sector.
Answer:
(i) TISCO
(ii) RIL.

Question 30.
What is the main purpose of private sector?
Answer:
The main purpose of private sector is to gain profit.

Question 31.
What type of workers need protection in rural and urban areas?
Answer:
The casual wokers need protection in rural and urban areas.

Question 32.
Whose responsibility is to provide health and education facilities?
Answer:
It is the government’s responsibility to provide health and education facilities.

Short Answer Type Questions-I

Question 1.
What do you know about secondary sector activities ? Explain with few examples.
Answer:
The secondary sector covers all activities, in which natural products are changed into other forms, through ways of manufacturing, that we associate with industrial activity. It is the next step after primary activity. The product is not produced by nature, but has to be made, and therefore, some process of manufacturing is essential, and this could be in a factory, a workshop or at home. For example—weaving cloth by using cotton fibre, making sugar or gur by using sugar cane etc.

Question 2.
Give two points of distinction between final goods and intermediate goods.
Answer:
The two points of distinction between final goods and intermediate goods are as follows:
Final Goods:
1. Final goods are those goods, which reach to the consumers at last.
2. Example-Biscuit, bread, chocolate, almirah, television etc.

Intermediate Goods:
1. Intermediate goods are used in producing final goods or services.
2. Example-Flour, cotton, wheat, steel etc.

Question 3.
In India, the development process has led to an increase in the share of the tertiary sector in GDP. Do you agree with this statement? Explain it.
Answer:
Yes, I agree with this statement. The development process has led to an increase in the share of the tertiary sector in GDP, because the development has increased in the tertiary sector activities, and the share in GDP of this sector has also increased due to an increase in employment in the service sector.

Question 4.
Compare the rate of growth of the tertiary sector with other sectors in terms of GDP and employment.
Answer:
Over the forty years between 1973 and 2013, while production in all the three sectors—Primary, Secondary and Tertiary has increased, but, it has increased the most in the tertiary sector. Therefore, the tertiary sector has become the largest producing sector in India, replacing the primary sector. It generates most of employment opportunities and increases the GDP, more, in comparison to other sectors.

Short Answer Type Questions-II

Question 1.
Give the classification of the economic sector.
Answer:
The classification of the economic sector is as follows:
(I) On the basis of nature of activity on the basis of nature of the activity, the economic sector can be classified as given below:
(i) Primary sector or agriculture and related sector,
(ii) Secondary sector or industrial sector,
(iii) Tertiary sector or service sector.

(II) On the basis of people employed on the basis of people employed, the economic activities can be classified as follows :
(i) Organised sector,
(ii) Unorganised sector.

(III) On the basis of ownership on the basis of ownership, the economic sector can be classified as given below :
(i) Public sector,
(ii) Private sector.

Question 2.
Why are most of the people in India employed in the primary sector? Explain.
Answer:
Most of the people in India are employed in the primary sector because of the following reasons:

• Indian economy is a rural economy, and as such, more than 60 per cent of the people still depended upon the primary sector, mainly, on agriculture.
• A majority of the population of India resides in the villages, where their main occupation is agriculture and animal husbandry, which forms a major part of the primary sector.
• In India, the primary sector covers various types of economic activities, like- agriculture, mining, forestry, fishing, lumbering and animal husbandry, so a large number of people are still engaged in the primary sector.
• Other economic sectors are the secondary and the tertiary sectors in India. These have still failed to provide more employment opportunities to a majority of the Indian people, so the people are forced to engage themselves in the primary sector.

Question 3.
What is the importance of service sector?
Answer:
The importance of service sector is as follows:

• Service sector increases the sale of goods and services through transportation, communication, warehousing etc.
• Transportation service helps in the transfer of goods from one area to another.
• The service sector provides cheap and efficient service, that is beneficial to consumer.
• Service sector provides quick and economical services to the consumers.
• Service sector removes time and place barriers.

Question 4.
Explain reasons which are responsible for increasing importance of tertiary sector in India?
Answer:
(i) In any country, several services such as hospitals, educational institutions, post and telegraph services, police station, courts, village administration offices, transport, banks etc. are required. These can be considered as basic services in a developing country.

(ii) The development of agriculture and industries leads to the development of services such as, transport, trade, storage and the like. Greater the development of the primary and secondary sectors, more would be the demand of such services.

(iii) Rise of income level leads to rise in more services because people like eating out, tourism, shopping, private schools and hospitals etc. in big cities.

(iv) Over the past decades or so, certain new services such as those based on information and communication technology have become important and essential. The production of these service has been rising rapidly. It is the reason for their expansion.

Question 5.
Explain how public sector contributes to the economic development of the Nation?
Answer:
In the public sector, ownership of assets and delivery of services is under the government. The government spends huge amounts of money in providing various services to the public at reasonable costs. The Government, thus, contributes towards the economic development of the nation by development of infrastructure, i.e:
(1) Construction of roads, national highways, flyovers, metro rails, railway lines, irrigation through dams etc.
(2) The Government provides impetus to industrial growth by supplying electricity at the affordable rates. ‘
(3) By running schools and providing good quality of education, the government is trying to remove illiteracy and take the nation a head.

Question 6.
State any three features of the National Rural Guarantee Act, 2005.
OR
Why is NREGA (MGNREGA) is also called ‘the right to work’? Explain.
Answer:
Every state or region in India has the potential for increasing the income and employment in that area. Recognising this, the central Govt, in India has passed an act called the National Rural Employment Guarantee Act, 2005.

Main features of the NREGA 2005 are:
(1) To implement the Right to Work in 200 districts of India.
(2) To guarantee 100 days of employment in a year by the Government. In case the Government fails to be so, it offers an unemployment allowance.
(3) To give preference to the type of work that will help increase the production from

Question 7.
Is public sector compulsory for an economy? Discuss.
Answer:
Yes, public sector is the most compulsory sector for an economy. The reasons for this, are as follows-

• Only the government can invest in necessary public projects, like, roads, bridges, ports, electricity, irrigation facility, dams etc.
• The government provides basic facilities to people, at reasonable costs.
• The government encourages the private sector. The private sector cannot continue its production or business without the encouragement of government. So, the government supports some activities, to develop private sector.
• The government buys wheat and rice from the farmers at fair price, stores these in its godowns and sells to the consumers at lower price, through ration shops.
• The government also has some primary responsibilities, like-providing health services, better education etc.

Question 8.
State some measures that you feel will help to protect the labourers in the unorganised sector.
Answer:
Following are the measures that will help to protect the labourers in the unorganised sector:

• Government should make rules and regulations and they should be followed strictly.
• The government should support small-scale industries in getting raw material and distribution of production.
• The government should make a law, regarding minimum wages of employees in unorganised sector, and the law should be followed strictly.
• The workers should work in such an unorganised sector, where salary is at par along with the good standard of living, and where job is secured.

Question 9.
Why did not a shift out of primary sector happen in case of employment although there has been a change in the share of the three sector in GDP?
Answer:
A remarkable fact about India is that, while there has been a change in the share of the three sectors in GDP, a similar shift has not taken in employment.
(1) A similar shift out of primary sector did not happen in case of employment because not enough jobs were created in the secondary and tertiary sectors.
(2) Even though industrial output of the production of goods went up by eight times during the period, employment in the industry went up by only 2-5 times.
(3) While production in the service sector rose by 11 times, employment in the service sector rose less than three times. As a result, more than half of the workers in the country were working in the primary sector, mainly in agriculture, producing only a quarter of GDP.

Question 10.
“The Problem of underemployment is not confined only to Agriculture.” Support the statement with examples.
Answer:
The problem of underemployment is not confined to agriculture only. It can also happen in other sectors too :
For example: There are thousands of casual workers in the service sector in urban areas who search for daily employment. They are employed as painters, plumbers, repair persons and other odd jobbers. Many of them don’t find jobs everyday.
(1) Similarly, we see other people of service sector on ‘the street pushing a cart or selling something where they may spend the whole day but earn very little. They are doing such work only due to the lack of better employment opportunities. Social Science

(2) The unorganised sector includes small and scattered units outside governmental control. Employment is not .secure. People can be asked to leave without any reason. When there is less work, such as during off season, some people may be asked to leave.

Long Answer Type Questions

Question 1.
Why is service sector growing so fast? Give reasons.
OR
Why is the tertiary sector becoming more important in India ? Explain.
Answer:
In the past forty years between 1973 to 2013, the production in all three sectors has increased, but it has increased the most in the tertiary sector, or say, the service sector. Consequently, the tertiary sector has replaced the primary sector and emerged as the largest producing sector in India.

The reasons for this are as given below:
(1) Basic Services-In any country, several basic services are required for ‘smooth running of economic activities. These several basic services are hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defense, transport, banks, insurance companies etc. In a developing country, the government has to take responsibility for the provision of these services.

(2) Development of means of transport and communication-The development of agriculture and industry leads to the development of transport, trade, storage, communication etc. More the development of the primary and the secondary sectors, more would be the demand for such services.

(3) Latest Services-Over the past decade, the latest services based on information and communication technology have become most important and necessary. For example-ATM booth, call centre, internet cafe, software companies etc. The production of these services is increasing rapidly.

(4) More Income, More Services-The per capita income of our country is increasing. When income level rises, people start demanding many more services, like-shopping, tourism, eating outlets, professional training, private schools, private hospitals etc.

Question 2.
What is GDP? How do we count the various goods and services for calculating GDP? Explain with suitable examples.
Answer:
GDP means Gross Domestic Product. It is the total value of final goods and services produced in a particular year within a country. It includes contribution of all sectors of economy.

We calculate the GDP in the following ways:
(i) The final value of goods and services in the three sectors primary, secondary and tertiary, are calculated and then, added up.

(ii) The value of final goods and services produced in each sector during a particular year, provides the total production of the sector for that year, and the sum of the production in three sectors-primary, secondary and tertiary.

(iii) All the goods and services provided and sold are not required to be calculated. It makes sense only to include final goods and services. For example, suppose, a farmer sells wheat to a flour mill owner for ₹10 per kg. The flour mill owner grinds the wheat and sells the flour to a biscuit company for ₹12 per kg. The biscuit company uses flour and other ingredients, like-salt, sugar and oil etc. to make the packets of biscuits. The biscuit company sells biscuits in the market to the consumer, for ₹15 per packet. Now, biscuits are the final goods, i.e. goods that reach the consumer.

Thus, in this example, intermediate goods are wheat and flour, which are used for making biscuits. Intermediate products should not be counted in the figure of GDP. Biscuits are the final products, prepared by using flour and other ingredients. Only the final products are reaching the actual consumers. The value of the intermediate products is already counted in the final products and if this is again counted, it will lead to double counting, causing an error in the estimation of Gross Domestic Product (GDP).

Question 3.
Why is organised sector preferred by the employees? Explain.
OR
What is an organised sector? Elaborate the working conditions of the organised sector in India.
Answer:
Organised sector induces all enterprises which are either registered or under the purvey of any of the relevant government rule, like Factory Act. People enjoy working in the organised sector, as there is a proper and systematic way to get the work done from the employees.

Following are the reasons for giving priority to organised sector by the employees:

• Workers enjoy security of employment. They cannot be removed from employment without proper intimation.
• The workers work only for a fixed number of hours. If they work more, they have to be paid overtime wages by the employer.
• Many benefits are given to the workers like leave, payment during holidays, provident fund, gratuity, medical benefits, etc.
• Under the laws, the management of the enterprise has to ensure facilities like drinking water and a safe working environment.

Question 4.
How can employment be increased in both rural and urban areas? Explain.
OR
What steps should be taken to create more employment. Explain.
Answer:
Unemployment is a major problem in India and it is prevalent in both rural and urban areas. Underemployment is also visible as disguised unemployment in agricultural and in urban areas. These issues need to be addressed properly.

The steps that can be taken to increase employment are:
(i) Education and health sector can create massive employment in urban as well as rural areas. Vocational training also creates massive employment so these sectors should be encouraged.

(ii) Allied activities like horticulture, pisciculture should be promoted which will create employment in rural areas. Promotion of small-scale industries will also create employment.

(iii) Social safety programmes like NREGA, NRLM (National Rural Livelihood Mission), etc generate massive employment in rural and urban areas respectively so they should be encouraged.

(iv) Cheap credit for setting up new businesses can create employment in both rural and urban areas.

Question 5.
Describe the historical changes that have taken place in the sectors of the economy in the developed countries.
OR
“Primary sector was the most important sector of economic activity at initial stages of development.” Evaluate the statement.
Answer: The history of developed countries reveals a general pattern of development in their economic structure. First, primary sectors predominantly contributed to Gross Domestic Product (GDP) and provided most of the employment. Then when agricultural activities increased, there.was need for industrialisation and gradually, industrial sectors dominated the economy.

Much of the workers Shifted to industrial sector, but agricultural productivity was not hampered as industrial sector produced farm equipment, fertilisers etc that increased productivity. Aftei*ta hundred years, service sector increased and most of the workers shifted to service sector. Now, service sector contributes the maximum share to economy. The service sector has grown in terms of total production and employment generation without disturbing the production and productivity of other two sectors. So, it is seen that the economic structure had been shifting sectors in developed countries. Similarly, almost all the developing countries are following the same path but this may be at a different pace.

Question 6.
Why is the tertiary sector preferred by the employees? Explain.
Answer:
The tertiary sector is becoming more important in india because of following reasons:

• The tertiary sector provides basic services such as public transportation, medical care, banking, electricity, post office, etc. under the control of the government.
• The tertiary sector offers huge employment opportunities for skilled as well as unskilled employees.
• People enjoy security of employment and if they work more, they get overtime allowances.
• Paid leaves, payment during holidays, medical benefits, secure working environment, etc. are other benefits offered in this sector today.