PREVIOUS YEAR

ECONOMICS
QUESTIONS-X
SECTORS OF THE INDIAN ECONOMY

VERY ANSWER TYPE QUESTIONS (1 Mark)

1. Distinguish between ‘primary’ and ‘secondary’ sectors. [Delhi 2019]

Ans. Primary sector exploits natural resources to produce goods whereas secondary
sector change natural products into other forms through manufacturing.

2. Distinguish between ‘secondary’ and ‘tertiary’ sectors. [Delhi 2019]

Ans. In secondary sector, natural products are changed into other forms through different
ways of manufacturing. On the other hand, tertiary sector includes distribution of
services, training and support.

3. When we produce goods by exploiting natural resources, in which category of

economic sector such activities come? [CBSE 2018]
Ans. When we produce goods by exploiting natural resources, it falls in the category of
primary sector.

4. When we change natural products into other forms, which category of economic
sector such activity comes? [CBSE 2018]
Ans. It comes under the secondary sector.

5. What does GDP stands for ? [CBSE 2016]

Ans. GDP stands for Gross Domestic Product.

6. Where is the disguised employment found mostly? [CBSE 2014]

Ans. The disguised employment is mostly found in the agriculture sector.

7. Mention any one feature of the unorganised sector. [CBSE 2014]

Ans. Unorganised sector is not registered with the government.

8. In which sector are a large number of workers losing their jobs since
1990 ? [CBSE 2014]
Ans : In the organised sector, a large number of workers losing their jobs since 1990.

9. What was the most important sector of economic activities at the earliest stages of
development? [CBSE 2014]
Ans. Primary sector was the most important sector of economic activities at the earliest
stages of development.

10. Name the sector which forms the base for all other products. [CBSE 2012]
Ans. Primary sector forms the base for all other products.
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ECONOMICS
QUESTIONS-X
SHORT ANSWER TYPE QUESTIONS (3 Marks)

11. Why is the ‘tertiary sector’ becoming important in India? Explain any three
reasons. [Delhi 2019]
Ans. Tertiary sector is the service sector that provides support to the primary and
secondary sectors and to itself. Over the forty years, between 1973 and 74, and 2013
and 14, while production in all the three sectors has increased, it has increased the
most in the tertiary sector. The following factors are making the tertiary sector
important in India.
(a) Basic services: In any country, several services such as hospitals, educational
institutions, post and telegraph services, police stations, courts, village
administrative offices, municipal corporations, defence, transport, banks and
insurance companies, are required. These can be considered as basic services.
In a developing country, the government has to take responsibility for the
provision of these services.
(b) Development of primary and secondary sector: The development of
agriculture and industry leads to the development of services such as transport,
trade and storage. The greater the development of the primary and secondary
sectors, the more would be the demand for such services.
(c) Rise in income levels: As income levels rise, certain sections of people start
demanding many more services like eating out, tourism, shopping, private
hospitals, private schools and professional training centres. We can see this
change quite sharply in cities, especially in big cities.
(d) Rise in information technology: Over the past decade or so, certain new
services, such as those based on information and communication technology
have become important and essential. The production of these services has been
rising rapidly.
(e) Globalization: Due to globalization, people have become aware of new services
and activities, and communication because of which the tertiary sector has
gained importance. (any three)

12. Distinguish the service conditions of organised sector with that of unorganised
sector. [CBSE 2018]
OR
Explain with suitable examples which part of the service sector is not growing in
importance. [CBSE 2009]
Ans. The service conditions of the organised and the unorganised sector are:
a. Service conditions of Organised sector:
1. These are the big units.
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ECONOMICS
QUESTIONS-X
2. These units are registered with the government.
3. There are some formal processes and procedures in this sector. Therefore, it is
called organized.
4. There is security of employment.
b. Service conditions of unorganised sector:
1. These are the small and scattered units.
2. These units are not registered with the government.
3. There are no formal processes and procedures in this sector. Therefore, it is
called Unorganised.
4. There is no security of employment.

13. Name the sector that is the largest employer in India. Why does this sector produce
only a quarter of the national GDP? [CBSE 2016]
OR
Explain the meaning of disguised employment with the help of an
example. [CBSE 2012]
Ans. Primary sector is the largest employer sector in India. This sector produce only a
quarter of the national GDP because there is a problem of disguised unemployment
in this sector. Though almost 60% people of India are engaged in this sector but all
are not required there. Many of them are extra people. They are forced to be in this
sector as there is less job opportunities in the other sectors.

14. With the example of sugarcane, explain the interdependence of all the three sectors
of the economy. [CBSE 2015]
Ans. All the three sectors primary, secondary and tertiary are highly interdependent. They
need the help of each other, without which none of the sectors would be able to
complete its production or service.
For example: Cultivation of sugarcane comes under the primary sector. This
cultivated sugarcane, is the raw material for sugar-making industries (comes ponder
secondary sector]. Sugarcane is transported to the sugar mills with the help of
vehicles which comes under the tertiary sector. Sugar made by sugar mills are
further transported to various markets and sold by retailers and wholesalers using
tertiary sector.

15. Explain disguised unemployment with two examples, one from urban areas and other
from rural areas. [CBSE 2014]
Ans. When more than the required people are working in a field, is called disguised
unemployment. In several areas, all the members of a family work in the same
agricultural land (which is small and does not require so much members].
In urban areas, people like plumber, carpenter, painter are not able to find work on a
daily basis and hence do the odd job.
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ECONOMICS
QUESTIONS-X
16. Why has the entire tertiary sector not grown in importance? Explain. [CBSE 2012]
Ans. The service sector includes two different kinds of people. One who is highly
educated, skilled and earning very high such as doctors, engineers, software
professionals etc., and on the other hand those who are not educated and unskilled
such as street vendors, repair persons etc. Though the service sector has grown
over the past few decades but not all of the service sector has grown equally. The
educated and highly skilled workers have grown very high whereas the uneducated
and the unskilled are still struggling.

17. What is unorganised sector? Describe the working procedure of this

sector. [CBSE 2009]
Ans. Unorganised sector are the small and scattered units. These units are not registered
with the government. The working procedure of this sector are:
a. They do not follow the rules and regulations followed by the government.
b. There are no formal processes and procedures in this sector. Therefore, it is
called Unorganised.
c. There is no security of employment.
d. There is no fixed working hours and workers are not paid for overtime.
e. There are no benefits like paid holidays, medical facilities, safe working
environment, provident fund etc.

LONG ANSWER TYPE QUESTIONS (5 Marks)

18. Compare the economic activities of the private sector with that of the public
sector. [AI Ajmer2018]
Ans.
Public Sector Private Sector
(a) This sector aims at increasing the (a) This sector aims at earning maximum
facilities for public welfare. profits.
(b) The government owns most of (b) The ownership of assets and delivery
the assets and provides all the of services is in the hands of private
services. individuals or companies.
(c) The decisions regarding (c) The decisions regarding production
production and distribution are and distribution are taken by owners
taken by the government. or manager of the company.
(d) This sector provides basic (d) This sector provides consumer goods
facilities like education, health, to the people.
food and security to people.
(e) Examples—Indian Railways and (e) Examples—TISCO and Reliance
the post office Industries Limited

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ECONOMICS
QUESTIONS-X
19. Explain with suitable examples how public sector contributes to the economic
development of the nation. [CBSE2015]
Ans. (a) Creation of infrastructure: Public sector promotes the economic development
since it brings about creation and expansion of infrastructure and the
infrastructure plays an important role in economic development.
(b) Generates financial resources: Public Sector provides for various employment
opportunities since major part of public sector depends on manpower and
higher employment opportunities implies higher generation of financial
resources for economic development.
(c) Contributes to HDI: Public sector majorly contributes to the Human
Development Index since health and education industries come under the
purview of public sector.
(d) Availability of goods: Public sector helps in availability of goods at moderate
rates, which helps in maintaining financial security and thus helps in economic
development.
(e) Provides encouragement: It provides encouragement to small, medium and
cottage production units. It also strives for the creation of welfare state.

20. Describe the provisions of National Rural Employment Guarantee

Act, 2005. [CBSE 2014]
Ans. Mahatma Gandhi National Rural Employment Guarantee Act:
a. This act was passed in the year 2005.
b. According to this Act, 100 days of guaranteed employment is provided to all
those who are able to work and are in need of work in the rural areas.
c. Unemployment allowanceis provided to the workers if the government is not able
to provide them work within 15 days.
d. This act helps in providing income and livelihood to the people in the rural areas.

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