Class 10 Economics Chapter 2 Extra Questions and Answers Sectors of Indian Economy

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Class 10 Economics Chapter 2 Extra Questions and Answers Sectors of Indian Economy

Sectors of Indian Economy Class 10 Extra Questions and Answer Economics Chapter 2 Very Short Answers Type

Question 1.
What is the main provision of the Equal Wages Act?
Answer:
As per the provision of the Equal Wages Act, all workers doing the same work must be paid the same.

Question 2.
What do you mean by GDP? What does it indicate?
Answer:
GDP stands for Gross Domestic Product. It is the total value of all final goods and services produced within a country during a particular year. GDP of a country indicates the size of its economy.

Question 3.
What do final goods and services mean?
Answer:
Final goods and services are the output of production processes, and demand for these goods and services is directly determined by consumer need or preference. For example, biscuits, butter, etc. are final goods that reach to the consumers.

Question 4.
What are intermediate goods and services?
Answer:
Intermediate goods and services are required for production of other goods and services. For example, wheat, sugarcane, etc. are intermediate goods used up in producing final goods and services.

Question 5.
Classify economy on the basis of ownership of enterprises.
Answer:
On the basis of ownership of enterprises, economy is classified into

  • public sector, and
  • private sector.

Question 6.
Give one difference between organised and unorganised sectors.
Answer:
Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. The unorganised sector is characterised by small and scattered units which are largely outside the control of the government and the employment is not secure.

Question 7.
Name the sector in which the government owns most of the assets and provides all the services.
Answer:
Public sector.

Question 8.
How many days of guaranteed employment are provided under National Rural Employment Guarantee Act, 2005? (Imp)
Answer:
100 days of employment is guaranteed under NREGA 2005.

Question 9.
Why is the primary sector also called agriculture and related sector?
Answer:
Since most of the natural products we get are from agriculture, dairy, fishing, forestry, the primary sector is also called agriculture and related Sector.

Question 10.
The secondary sector is also called industrial sector. Why?
Answer:
Since the secondary sector gradually became associated with the different kinds of industries that came up, it is also called industrial sector.

Question 11.
Why is the tertiary sector also called the service sector?
Answer:
Since the activities that fall under the tertiary sector generate services rather than goods, this sector is also called the service sector.

Question 12.
Which sector is the largest employer in India?
Answer:
The primary sector is the largest employer in India.

Question 13.
What was the status of the tertiary sector in production and employment during the year 2010-11?
Answer:
While production in the service sector rose by more than 14 times, employment in the service sector rose around five times.

Question 14.
What does the unorganised sector in the rural areas mostly comprise of?
Answer:
In the rural areas, the unorganised sector mostly comprises of landless agricultural labourers, small and marginal farmers, sharecroppers and artisans such as weavers, carpenters, etc.

Question 15.
What does the unorganised sector in the urban areas comprise of ?
Answer:
In the urban areas, unorganised sector comprises mainly of workers in small-scale industry, casual workers in construction, trade and transport, etc. and those who work as street vendors, head load workers, garment makers, etc.

Question 16.
Why does small-scale industry need government’s support for?
Answer:
Small-scale industry needs government’s support for procuring raw material and marketing of output.

Question 17.
Write the full form of NREGA.
Answer:
National Rural Employment Guarantee Act.

Question 18.
What is under-employment?
Answer:
Under-employment is a situation, where people are apparently working but all of them are made to work less than their potential.

Question 19.
What do you mean by ‘fair price’?
Answer:
The price on which the government buys foodgrains such as wheat, rice, etc. from farmers is called fair price. The government stores these foodgrains in its godowns and sells at a lower price to consumers through ration shops.

Sectors of Indian Economy Class 10 Extra Questions and Answer Economics Chapter 2 Short Answers Type

Question 1.
Mention the three ways in which GDP can be measured.
Answer:
The three ways in which GDP can be measured are:

  • By counting the value of what has been produced in the country in a given year. Here it is worth- mentioning that we are not supposed to count either raw material or intermediate goods used in domestic production. This is done to avoid double counting.
  • By adding the incomes earned in a given year in production. By doing this, we get the income measure of GDP.
  • By counting all the payments made in the year.

Question 2.
Distinguish between the public sector and private sector. (V. Imp)
Answer:

Public Sector Private Sector
(i) In, the public sector, the government owns most of the assets and provides all the services. For example, Railways, Hindustan Petroleum, etc. (i) In the private sector, ownership of assets and delivery of services is in the hands of private individuals or companies. For example, Maruti Udyog, Reliance Industries Limited (RIL) etc..
(ii) The purpose of the public sector is not just to earn profits but to work for the welfare of the public. (ii) The activities in the private sector are guided by the motive to earn profits. It has nothing to do with the welfare of the public.
(iii) The public sector provides basic facilities which include health, hygiene, education, drinking water, food, etc. at subsidised rates. (iii) The private sector provides consumer goods to the people at high rates.

Question 3.
What is GDP? Which authority is responsible for collecting data for the GDP in India? How does it do this task?
Answer:
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 sum of production in the three sectors gives what is called the Gross Domestic Product or GDP of a country.

It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is. In India, the mammoth task of measuring 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 total volume of goods and services and their prices and then estimates the GDP.

Question 4.
Explain the objectives of National Rural Employment Guarantee Act, 2005.
Answer:
The objectives of implementing the NREGA 2005 include —

  • To provide at least 100 days employment to the adult members of each family living in rural areas who are willing to do unskilled labour.
  • To create permanent assets in rural areas.
  • To develop tourism, regional craft industry, or new services like IT, etc. to increase income and employment for people.

Question 5.
“The problem of underemployment is not confined only to agriculture”. Explain with examples.
Answer:
The problem of underemployment is rampant in agriculture but this does not mean that it is not found in any other fields. The truth is that this problem can also happen in secondary and tertiary sectors. 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 others doing odd jobs. Many of them do not find work everyday. Similarly, we see other people of the service sector on the street pushing a cart or selling household things where they may spend the whole day but earn very little. They are doing this work because they do not have better opportunities. In this way, they have become victims of the problem of under-employment.

Sectors of Indian Economy Class 10 Extra Questions and Answer Economics Chapter 2 Long Answers Type

Question 1.
Why is the tertiary sector becoming so important in India? Give four reasons. (V. Imp)
Answer:
No, I do not agree to this point. The truth is that tertiary sector is playing a very significant role in the development of Indian economy. Over forty years between 1970-71 and 2010-11, while production in all the three sectors has increased, it has increased the most in the tertiary sector which ultimately boosts up Indian economy. The reasons behind it are—

(i) Tertiary sector helps in the development of the primary and secondary sectors by providing them services like transportation, storage, banking, communication, etc. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times, it may be necessary to store these in godowns.

(ii) Over the past decade or so, certain new services such as those based on information technology have become important and essential. The production of these services has been rising rapidly. As a result, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2010-11.

(iii) As income levels rise, certain sections of people especially in big cities, start demanding many more services like eating out, tourism, shopping, private hospitals, etc. This trend has contributed vastly to the Indian economy.

Question 2.
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer:

Primary sector Secondary sector Tertiary sector
Basket weaver Tailor Milk vendor
Flower cultivator Workers in match factory Priest
Fishermen Courier
Gardener Astronaut
 Potter Call centre employee
Bee-keeper

Question 3.
Describe all the three sectors of economic activities. How are they inter-dependent?
Answer:
Our economic activities are grouped into three sectors-
(i) Primary Sector: Activities under primary sector are undertaken by directly using natural resources. In other words, when we produce a good by exploiting natural resources, it is an activity of the primary sector. It forms the base for all other products that we subsequently make. For example, agriculture, dairy, forestry, fishing, mining, etc.

(ii) Secondary Sector: This sector covers 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. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. This could be in a factory, a workshop or at home. For example, using sugarcane as a raw material, we make sugar or gur.

(iii) Tertiary Sector: The activities that help in the development of the primary and secondary sectors come under the tertiary sector. These activities, by themselves, do not produce a good but they are an aid or support for the production process. For example, transport, banking, insurance, internet cafe, etc. Economic activities, though, are grouped into three different categories, are highly interdependent.

This can be better understood through an example. Cultivation of sugarcane is an agricultural activity which comes under the primary sector. Raw materials from the primary sector are changed into processed goods through ways of manufacturing in the secondary sector.

Using sugarcane as a raw material, we make sugar or gur in a factory. This sugar and gur would need to be transported by trucks, etc. and then sold in wholesale and retail shops. Thus, transport is an example of tertiary activity. It provides necessary service to make things available for consumers.

Sectors of Indian Economy Class 10 Extra Questions and Answer Economics Chapter 2 Higher Order Thinking Skills (HOTS) Questions

Question 1.
What are final and intermediate goods? How do they help in calculating Gross Domestic Product or GDP?
Answer:
Final goods and services are the output of production processes, and demand for these goods and services is directly determined by consumer need or preference. For example, biscuits, butter, etc. are final goods that reach to the consumers.

Intermediate goods and services are required for production of other goods and services. For example, wheat, sugarcane, etc. are intermediate goods used up in producing final goods and services.

The value of final goods and services produced in the three sectors during a particular year provides the total production of the sector for that year. And the sum production in the three sectors gives the Gross Domestic Product or GDP of a country. It is the value of all final goods and services produced within a country during a particular year.

Question 2.
‘While there has been a change in the share of the three sectors in GDP, a similar shift has not taken place in employment’. Explain with reference to India.
Answer:
The data for India, for the last forty years, shows that there has been a change in the share of the three sectors in the country’s GDP, but a similar shift has not taken place in employment which remains in the primary sector. This is because not enough jobs were created in the secondary and tertiary sectors.

Even though industrial output or production of goods went up by more than nine times during the period, employment in the industry went up by around three times. The same applies to tertiary sector as well. While production in the service sector rose by more than 14 times, employment in the service sector rose around five times.

As a result, more than half of the workers in the country are engaged in the primary sector, mainly in agriculture, producing only a quarter of the GDP. In contrast to this, the secondary and tertiary sectors produce three-fourth of the produce whereas they employ less than half the people.

Sectors of Indian Economy Class 10 Extra Questions and Answer Economics Chapter 2 Value-based Questions (VBQs)

Question 1.
Which values are associated with the public sector?
Answer:
There are several things needed by the society as a whole but which the private sector will not provide at a reasonable cost. Besides basic things like water, electricity, healthcare etc., we also need roads, railways, bridges, etc. The government undertakes these activities and ensures that these facilities are available for everyone. The following values can be associated with the public sector

  • Public facilities are meant for all.
  • There is no differentiation between people. Everyone irrespective of caste, religion, gender, etc. can avail public facilities.
  • Public facilities are made available at subsidised rates.
  • Once they are provided, their benefits can be shared by many people.
  • Poor people are benefited.
  • The motive of public sector enterprise is social welfare and security.

Question 2.
Unemployment is affecting our life badly. What will you suggest to curb it?
Answer:

  • Job opportunities in different government departments should be increased.
  • Emphasis should be laid on skill development, particularly in rural areas.
  • Vocational training is also important.
  • Farmers should be given loans on low interest rate to invest in agriculture in order to get secured harvest.
  • Small scale industries should be promoted.