Chapter 2: Sectors of the Indian Economy

Q1Written answer

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)

ii. Workers in the _____ sector do not produce goods. (tertiary/agriculture)

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

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

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

vi. The activities in primary, secondary, and tertiary sectors are ______. (independent/interdependent)

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Ans:

i. Has not

ii. Tertiary

iii. Organised

iv. Large

v. Natural

v. Interdependent

Q2Written answer

Choose the most appropriate answer.

a. The sectors are classified into public and private sectors 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

iv. Informative technology

iv. All intermediate and final goods and services

iv. 70 percent

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Ans: Option iii) ownership of enterprise

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

i. Primary

ii. Secondary

iii. Tertiary

Ans: Option 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

Ans: Option ii) All final goods and services

d. In terms of GDP, the share of the tertiary sector in 2003 is _____

i. Between 20 per cent and 30 per cent

ii. Between 30 per cent and 40 per cent

iii. Between 50 per cent and 60 per cent

Ans: Option iii) between 50 per cent and 60 per cent

Q3Written answer

Match the following:

S/No.	Problems faced by farming sector	S/No.	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

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Ans:

S/No.	Problems faced by farming sector	S/No.	Some possible measures
1.	Unirrigated land	d.	Construction of canals by the government.
2.	Low prices for crops	c.	Procurement of food grains by the government.
3.	Debt burden	e.	Banks 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	b.	Cooperative marketing societies.

Q4Written answer

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

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Ans:

i. Tourist guide, appointed by the government.

ii. Vegetable vendor, since it does not require a formal education.

iii. Cobbler - workers in the public sector, his profession belongs to the private sector.

iv. SAHARA Airlines is a private enterprise, others are government undertakings.

Q5Written answer

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

Place of work	Nature of employment	Percentage of working people
In offices and factories registered with the government	Organised	15
Own shops, offices, clinics in the marketplace with formal licence	---	15
People working on the street, construction workers, domestic workers	---	20
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?

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Ans:

Place of Work	Nature of Employment	Percentage of Working People
In offices and factories registered with the government	Organised	15
Own shops, offices, clinics in the marketplace with formal licence	Organised	15
People working on the street, construction workers, domestic workers	Unorganised	20
Working in small workshops usually not registered with the government	Unorganised	---

The worker percentage of the unorganised sector in the city is 70%.

Q6Written answer

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

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Ans: Yes, classification of economic activities into primary, tertiary, and secondary is very much useful since it can give information on how and where the people of a country are employed.

It also helps in ascertaining, which sector of economic activity is contributing more or less in the GDP of the country and per capita income.

For example: Suppose if the tertiary sector is developing much faster compared to the primary sector, it means agriculture is depleting. We can observe that the agriculture profession is getting unpopular or regressive, if we classify economic activities for smooth administration as well as development.

Q7Written answer

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.

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Ans: Each sector should focus on employment and GDP since these determine the size of a country’s economy. Focus on employment and GDP will definitely help in determining two important things, that is, per capita income and productivity.

So, in each sector, employment rate, status, and its contribution towards the GDP, which helps to understand how a particular sector is functioning and what can be done to initiate future growth.

Other related issues which need to be examined are as follows:

Balanced regional development
Equality in income and wealth among all the citizens of the country.
Modernization of technology.
How to eradicate poverty
Self-reliance of the country
To have surplus food production in India.

Q8Written answer

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.

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Ans:

S/No.	Nature of work	Nature of activity	Sector
1	Bank Clerk	Tertiary	Organised
2	Freelancer cartoonist	Tertiary	Unorganised
3	Construction worker	Secondary	Unorganised
4	Doctor in AIIMS	Tertiary	Organised
5	DTC bus driver	Tertiary	Organised
6	Farmer	Primary	Unorganised
7	Guest house receptionist	Tertiary	Unorganised
8	Tailoring shop	Tertiary	Unorganised
9	Public sector factory supervisor	Secondary	Organised

We have classified them according to the nature of the activity and whether they are working in an organised or unorganised sector. This gives us information on how and where people are employed.

Q9Written answer

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

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Ans: The tertiary sector is different from the other 2 sectors because the other two sectors produce goods, the only difference is that this sector does not manufacture goods by themselves. The activities under this sector help in developing the primary and secondary sectors. These activities support the manufacturing process.

Example: communication, banking, storage, insurance, transport, trade etc. Hence, these are called the service sector.

Q10Written answer

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

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Worked solution

Ans: Disguised unemployment is when the people who are visibly employed but they are actually unemployed. This kind of situation is called Hidden Unemployment.

For example:

In rural areas, this kind of employment is found in the agriculture sector, suppose in a family of 9 people everyone is engaged and doing work in the same agricultural area. If 4 people are removed from it, there will be no reduction in the result. Hence, these 4 people are actually disguisedly employed.
In urban areas, this kind of unemployment can be seen in service sectors, for example, in a family where all the members are working in a small business which can be managed by a less number of people.

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