Sectors of Indian Economy: TBSE Class 10 Economics answers

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Get here the notes, questions, answers, textbook solutions, summary, additional/extras, and PDF of TBSE (Tripura Board) Class 10 madhyamik Social Science (Economics/Understanding Economic Development) Chapter “Sectors of the Indian Economy.” However, the provided notes should only be treated as references, and the students are encouraged to make changes to them as they feel appropriate.

bundles of money, illustrating the chapter Sectors of Indian Economy

Summary

The economy can be divided into three sectors: primary, secondary, and tertiary. The primary sector involves using natural resources to produce goods, while the secondary sector involves manufacturing and processing natural resources to create new products. The tertiary sector provides services that support the production and distribution of goods. In recent times, new services based on information technology have become important. Each sector is important in its own way, and all three work together to create a functioning economy.

Economists use the values of goods and services to count the production of each sector. Final goods and services are included, while intermediate goods are not because their values are already included in the value of the final goods. The total production of a sector is the value of the final goods and services produced in a particular year, and the sum of production in all three sectors is the Gross Domestic Product (GDP) of a country.

The primary sector was historically the most important sector of economic activity during the initial stages of development, but over time, new methods of manufacturing were introduced, leading to the expansion of factories (secondary sector). This led to an increase in the buying and selling of natural products from the primary sector, and most people were employed in this sector. However, in the past 100 years, there has been a shift from the secondary sector to the tertiary sector in developed countries.

The service sector has become the most important in terms of total production, and most working people are employed in this sector. This shift from the secondary to the tertiary sector is the general pattern observed in developed countries. The tertiary sector has become the largest producing sector in India, surpassing the primary sector, due to several reasons such as the need for basic services, the development of agriculture and industry, rising income levels, and the growth of information and communication technology services.

Underemployment is common in India, with more people working in agriculture than necessary, resulting in disguised unemployment. Similarly, in the service sector, there are many casual workers searching for daily employment, and many of them don’t find work every day.

The Indian government faces several challenges to address the issue of unemployment, especially among young people. The majority of the population is aged between 5-29 years, but only 51% attend educational institutions. To provide education to the remaining children, the country needs more teachers, buildings, and other staff. A study estimates that nearly 20 lakh jobs could be created in the education sector alone. Additionally, improving the health situation requires more doctors, nurses, and health workers in rural areas. Each state or region has the potential to increase employment and income for its people by supporting sectors such as tourism, regional craft industries, and IT services.

To address short-term unemployment, the Indian government implemented the Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005), which guarantees 100 days of employment to all those who are able and in need of work in rural areas. However, job opportunities in the organized sector are expanding slowly, leaving a large number of workers with no other option but to take up unorganized sector jobs, which pay low salaries, offer no benefits, and have no job security. The government needs to provide support to small-scale industries, ensure adequate facilities for farmers, and protect the rights of casual workers in both rural and urban areas to address these issues.

The government’s role in the economy is to provide services that the private sector cannot provide at a reasonable cost, such as construction of infrastructure and providing health and education facilities for all. The government must spend on these primary responsibilities, as India’s illiterate population is one of the largest in the world, and the infant mortality rate of some states is higher than some of the poorest regions of the world. Therefore, the government needs to provide support and protection for workers in the unorganized sector, particularly those who are vulnerable, to promote both economic and social development.

Textual questions and answers

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. (has / has not)

Answer: has not

(ii) Workers in the _________ sector do not produce goods. (tertiary / agricultural)

Answer: tertiary

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

Answer: organised

(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)

Answer: large

(v) Cotton is a _________ product and cloth is a _________ product. (natural /manufactured)

Answer: natural, manufactured

(vi) The activities in primary, secondary and tertiary sectors are_________ (independent / interdependent)

Answer: interdependent

2. Choose the most appropriate answer.

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

(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

Answer: (iii) ownership of enterprises

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

(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

Answer: (i) primary

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

(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

Answer: (ii) all final goods and services

(d) In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.

(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70

Answer: (iv) 60 to 70

3. Match the following:

Problems faced by farming sector Some possible measures

1. Unirrigated land (a) Setting up agro-based mills
2. Low prices for crops(b) Cooperative marketing societies
3. Debt burden(c) Procurement of food grains by government
4. No job in the off season(d) Construction of canals by the government
5. Compelled to sell their grains to the local traders soon after harvest(e) Banks to provide credit with low interest 

Answer: 1. Unirrigated land – (d) Construction of canals by the government
2. Low prices for crops – (b) Cooperative marketing societies
3. Debt burden – (e) Banks to provide credit with low interest
4. No job in the off season – (a) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest – (c) Procurement of food grains by government

4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter

Answer: The odd one out is tourist guide because it is not a profession that involves creating or producing goods or services.

(ii) Teacher, doctor, vegetable vendor, lawyer

Answer: The odd one out is vegetable vendor because it is the only profession that is not typically associated with higher education or specialised training.

(iii) Postman, cobbler, soldier, police constable

Answer: The odd one is cobbler because cobbler is the only profession that involves repairing and making shoes, while the other three professions are involved in maintaining law and order

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Answer: The odd one out is MTNL because it is the only company that provides telecommunication services, while the other four are transportation companies.

5. A research scholar looked at the working people in the city of Surat and found the following.

Place of workNature of employmentPercentage of working people
In offices and factories registered with the governmentOrganised15
Own shops, office, clinics in marketplaces with formal license15
People working on the street, construction workers,  domestic workers20
Working in small workshops usually not registered with the government

Complete the table. What is the percentage of workers in the unorganised sector in this city?

Answer:

Place of workNature of employmentPercentage of working people
In offices and factories registered with the governmentOrganised15
Own shops, office, clinics in marketplaces with formal licenseOrganised15
People working on the street, construction workers,  domestic workersUnorganised20
Working in small workshops usually not registered with the governmentUnorganised50

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

Answer: the classification of economic activities into primary, secondary, and tertiary sectors is useful as it helps in understanding the interdependence of different sectors and their contribution to the economy. It also helps in identifying the employment opportunities and the nature of work in each sector. This classification is widely used by economists, policymakers, and businesses to analyze and plan economic development strategies. Additionally, it provides a framework for understanding the evolution of economies as they move from being primarily agricultural to industrial and then to service-based.

7. For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

Answer: One should focus on employment and GDP for each of the sectors because they are important indicators of the economic health of a country. Employment data provides information about the number of people working in a particular sector, which can help policymakers identify areas of job growth and areas where there may be a shortage of workers. GDP data provides information about the value of goods and services produced in a particular sector, which can help policymakers identify areas of economic growth and areas where there may be a decline in economic activity. However, there could be other issues that should be examined as well. For example, one could examine the environmental impact of economic activities in each sector, or the social and cultural implications of economic growth in certain areas. One could also examine issues related to income inequality, access to education and healthcare, and the overall quality of life for people working in each sector. By examining a range of issues, policymakers can develop a more comprehensive understanding of the economic and social implications of different economic activities.

8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.

Answer: The different types of work that adults around me do for a living are: accountant, actor/actress, architect, artist, baker, barber/hairdresser, chef/cook, cleaner, construction worker, dentist, doctor, electrician, engineer, farmer, fashion designer, firefighter, fisherman, florist, gardener, graphic designer, housekeeper, IT professional, journalist, lawyer, librarian, mechanic, musician, nurse, photographer, pilot, plumber, police officer, real estate agent, salesperson, scientist, teacher, writer. 

These jobs can be classified in different ways, but one way to classify them is based on the sector they belong to. For example, jobs like farmer, fisherman, and construction worker belong to the primary sector, which involves the extraction and production of raw materials. Jobs like baker, chef, and florist belong to the secondary sector, which involves the manufacturing and processing of goods. Jobs like accountant, architect, and IT professional belong to the tertiary sector, which involves the provision of services. 

Another way to classify these jobs is based on the level of skill and education required. For example, jobs like doctor, lawyer, and scientist require a high level of education and specialized skills, while jobs like housekeeper, cleaner, and salesperson may require less education and specialized skills. Ultimately, the classification of jobs depends on the criteria being used and the context in which they are being examined.

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

Answer: The tertiary sector is different from the other sectors because it involves the provision of services rather than the production of goods. This sector includes a wide range of activities such as education, healthcare, finance, transportation, and entertainment. Unlike the primary and secondary sectors, which involve the extraction and production of raw materials and the manufacturing and processing of goods, respectively, the tertiary sector is focused on meeting the needs and wants of consumers through the provision of services. 

Here are a few examples of economic activities that fall under the tertiary sector: 

i. Education: Schools, colleges, and universities provide educational services to students.
ii. Healthcare: Hospitals, clinics, and other healthcare facilities provide medical services to patients.
iii. Banking: Banks and other financial institutions provide financial services such as loans, savings accounts, and investment advice.
iv. Transportation: Airlines, railways, and other transportation companies provide transportation services to passengers and cargo.
v. Entertainment: Movie theaters, amusement parks, and other entertainment venues provide entertainment services to consumers.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer: Disguised unemployment is a situation where more people are employed in a job than are actually needed to perform the work. In other words, it is a situation where people appear to be employed, but their contribution to the work is negligible. This type of unemployment is often found in the agricultural sector, where too many people are employed on a farm, but the output remains the same even if some of them leave. For example, in rural areas, a farmer may have five family members working on a small plot of land, but only two of them are actually needed to cultivate the land. The other three family members are not contributing much to the work, but they are still considered employed. This is an example of disguised unemployment in the agricultural sector. In urban areas, disguised unemployment can be found in the informal sector, where people work as casual laborers. For instance, 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 don’t find work every day, but they are still considered employed. This is an example of disguised unemployment in the informal sector.

11. Distinguish between open unemployment and disguised unemployment.

Answer: Open unemployment refers to a situation where people are willing and able to work, but they are unable to find employment. In other words, they are actively seeking work but are unable to find any. This type of unemployment is visible and easily measurable. On the other hand, disguised unemployment is a situation where more people are employed in a job than are actually needed to perform the work. In other words, it is a situation where people appear to be employed, but their contribution to the work is negligible. This type of unemployment is often hidden and not easily measurable. The main difference between open unemployment and disguised unemployment is that in open unemployment, people are not employed and are actively seeking work, while in disguised unemployment, people are employed but their contribution to the work is negligible. Open unemployment is visible and easily measurable, while disguised unemployment is hidden and not easily measurable.

12. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

Answer: I cannot agree with the statement that the tertiary sector is not playing any significant role in the development of the Indian economy. In fact, the data for India over the last thirty years shows that while goods and services produced in the tertiary sector contribute the most to GDP, the employment remains in the primary sector. This indicates that the tertiary sector is contributing significantly to the overall growth of the Indian economy. Moreover, certain new services based on information technology such as internet cafes, ATM booths, call centres, software companies, etc. have become important in recent times, which are all part of the tertiary sector. These services have contributed significantly to the growth of the Indian economy and have created new employment opportunities. Therefore, it is clear that the tertiary sector is playing a significant role in the development of the Indian economy. While the primary sector still employs a large number of people, the contribution of the tertiary sector to the overall growth of the economy cannot be ignored.

13. Service sector in India employs two different kinds of people. Who are these?

Answer: The service sector in India employs different kinds of people. At one end, there are a limited number of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. 

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

Answer: Yes, I agree with this view that workers are often exploited in the unorganised sector. This is because the unorganised sector is largely outside the control of the government, and there are no strict rules and regulations in place to protect the rights of workers. As a result, many employers in the unorganised sector take advantage of this situation and pay their workers very low wages, often below the minimum wage. Workers in the unorganised sector are also not entitled to benefits such as overtime pay, paid leave, holidays, and sick leave. Moreover, employment in the unorganised sector is not secure, and workers can be asked to leave without any reason. All these factors contribute to the exploitation of workers in the unorganised sector.

15. How are the activities in the economy classified on the basis of employment conditions?

Answer: The activities in the economy can be classified on the basis of employment conditions into two sectors: organised and unorganised. The organised 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. Workers in the organised sector enjoy security of employment. 

On the other hand, the unorganised sector is largely outside the control of the government, and there are no strict rules and regulations in place to protect the rights of workers. As a result, many employers in the unorganised sector take advantage of this situation and pay their workers very low wages, often below the minimum wage. Workers in the unorganised sector are also not entitled to benefits such as overtime pay, paid leave, holidays, and sick leave.

16. Compare the employment conditions prevailing in the organised and unorganised sectors.

Answer: In the organised sector, employment conditions are generally better than in the unorganised sector. Workers in the organised sector typically have job security, regular working hours, paid leave, and other benefits such as health insurance and retirement plans. In contrast, workers in the unorganised sector often have low-paying jobs that are not secure, with no provision for overtime, paid leave, holidays, or leave due to sickness. They may be asked to leave without any reason, and their employment is not secure.

17. Explain the objective of implementing the NREGA 2005.

Answer: The objective of implementing the Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005) is to provide a legal guarantee for at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. The Act aims to enhance the livelihood security of people in rural areas by generating wage employment opportunities, creating durable assets, and strengthening the process of decentralization of governance. The Act also aims to create a safety net for the most vulnerable sections of society, especially women, Scheduled Castes (SCs), Scheduled Tribes (STs), and other backward classes (OBCs).

18. Using examples from your area compare and contrast that activities and functions of private and public sectors.

Answer: In my area, there are several examples of private sector activities, such as retail stores, restaurants, and technology companies. These businesses are owned and operated by private individuals or companies, and their primary objective is to earn profits. For example, a local restaurant may aim to provide high-quality food and service to attract customers and generate revenue. 

On the other hand, there are also several examples of public sector activities in my area, such as public schools, libraries, and parks. These services are owned and operated by the government, and their primary objective is to provide essential services to the public. For example, a public school may aim to provide education to students in the community, regardless of their ability to pay for private education. 

19. Discuss and fill the following table giving one example each from your area.

Well managed organisationBadly managed organisation
Public sector
Private Sector

Answer: 

Well managed organisationBadly managed organisation
Public sectorThe Public LibraryGovernment Schools
Private SectorZion HospitalDFL Limited

20. Give a few examples of public sector activities and explain why the government has taken them up.

Answer: A few examples of public sector activities and the reasons why the government has taken them up are: 

i. Building and maintaining public infrastructure such as roads, bridges, and public transportation systems. The government takes up these activities to ensure that citizens have access to safe and reliable transportation, which is essential for economic growth and development. 

ii. Providing healthcare services to citizens. The government takes up this activity to ensure that all citizens have access to affordable and quality healthcare, which is essential for maintaining a healthy population and promoting economic productivity. 

iii. Providing education services to citizens. The government takes up this activity to ensure that all citizens have access to quality education, which is essential for developing a skilled workforce and promoting economic growth. 

iv. Providing social welfare services such as housing, food, and financial assistance to citizens in need. The government takes up this activity to ensure that all citizens have access to basic necessities and can live with dignity.

21. Explain how public sector contributes to the economic development of a nation.

Answer: The public sector contributes to the economic development of a nation in several ways: 

i. Providing essential services: The public sector provides essential services such as healthcare, education, and infrastructure that are necessary for economic growth and development.
ii. Employment generation: The public sector is a major employer in many countries, providing jobs to millions of people. This helps to reduce unemployment and poverty, which are major obstacles to economic development.
iii. Investment in key sectors: The public sector invests in key sectors such as agriculture, manufacturing, and technology, which are critical for economic growth and development.
iv. Regulation and oversight: The public sector regulates and oversees economic activities to ensure that they are conducted in a fair and transparent manner. This helps to promote investor confidence and attract foreign investment, which is essential for economic development.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.

Answer: Wages: Workers in the unorganised sector often face issues related to low wages and irregular payment. For example, a street vendor may not earn enough to make ends meet, and may not have a regular income. Similarly, a daily wage labourer may not be paid for the days they are unable to work due to illness or other reasons. This makes it difficult for workers to plan their expenses and save for the future. 

Safety and Health: Workers in the unorganised sector often work in hazardous conditions without proper safety equipment or training. For example, a headload worker carrying heavy loads in a market may suffer from back pain or other injuries due to the weight of the load. Similarly, a construction worker may work at heights without proper safety equipment, risking falls and other accidents. 

To address these issues, the government can take steps to ensure that workers in the unorganised sector are paid fair wages and have access to basic safety and health measures. For example, the government can set minimum wage standards and ensure that employers comply with them. The government can also provide training and equipment to workers to ensure their safety and health.

23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?

Answer: 

SectorNumber of WorkersIncome Generated (in Rs. million)
Organised4,00,00032,000
Unorganised11,00,00028,000
Total15,00,00060,000

24. The following table gives the GDP in Rupees (Crores) by the three sectors:

YearPrimarySecondaryTertiary
200052,00048,5001,33,500
20138,00,50010,74,00038,68,000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.

Answer: For 2000: 

Total GDP = 52,000 + 48,500 + 1,33,500 = 2,34,000
Share of Primary sector = (52,000 / 2,34,000) x 100% = 22.22%
Share of Secondary sector = (48,500 / 2,34,000) x 100% = 20.73%
Share of Tertiary sector = (1,33,500 / 2,34,000) x 100% = 57.05% 

For 2013: 

Total GDP = 8,00,500 + 10,74,000 + 38,68,000 = 57,42,500
Share of Primary sector = (8,00,500 / 57,42,500) x 100% = 13.94%
Share of Secondary sector = (10,74,000 / 57,42,500) x 100% = 18.71%
Share of Tertiary sector = (38,68,000 / 57,42,500) x 100% = 67.35% 

(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.

Answer:

(iii) What conclusions can we draw from the bar graph?

Answer: The bar graph shows the distribution of GDP across the primary, secondary, and tertiary sectors in two different years, 2000 and 2013.

In 2000, the largest share of GDP was in the tertiary sector, accounting for 57.05% of the total, followed by the primary sector at 22.22%, and the secondary sector at 20.73%.

However, in 2013, the tertiary sector’s share had increased further, accounting for 67.35% of the total GDP. The secondary sector’s share also increased slightly to 18.71%, while the primary sector’s share decreased significantly to 13.94%.

From the bar graph, we can conclude that over time, there has been a shift in the structure of the economy towards the service sector, with a decline in the importance of agriculture and industry. This trend is consistent with the pattern observed in many developing and developed countries, where economic growth and development have led to a shift towards the service sector.

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