NCERT Solutions for Class 10 Social Science

ECONOMICS – Sectors of Indian Economy

1. How does the primary sector continue to be the largest employer in India while the tertiary sectors
contribute the highest share in the G.D.P.?
Ans. (i) It is because not enough jobs were created in the secondary and tertiary sectors. Even though industrial
output or the production of goods went up by eight times, employment in the industry went up by only 2.5
times.
(ii) The same applies to the tertiary sector as well. While production in the service sector rose by 11 times,
employment in the service sector rose less than three times.
(iii) As a result, more than half of the workers in the country are working 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.
(iv) It means that there are more people in agriculture than necessary. So, even if we move a few people out,
production will not be affected. In other words, workers in the agricultural sector are underemployed.

2. What do you understand by underemployment? Why is it called disguised unemployment? Explain

with an example each from urban and rural areas.
Ans. (i) If more people are employed in an activity than required it is known as under employment. In this situation
of underemployment, where people are apparently working, but all of them are made to work less than their
potential. The production will not be affected even if the surplus workers are thrown out.
(ii) This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly
visible as unemployed. Hence, it is also called disguised unemployment.
(iii) All members in a family work in a plot of land throughout the year in rural areas since they have nowhere
else to go for work. Each one is doing some work but no one is fully employed. This is the situation of
underemployment.
(iv) 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 every day. Similarly, there are people on the street pushing a cart or selling something
where they may spend the whole day but earn very little. They are doing this work because they do not have
better opportunities.
3. Suggest a few measures that can be adopted to tackle the problem of underemployment. (Measures to
solve problem of unemployment in Rural areas)
Ans. (i) The Government can spend some money or banks can give loans to improve the methods of cultivation
and to absorb surplus workers in new areas.
(ii) Construction of canals and dams can improve agricultural activities and create more employment
opportunities.
(iii) If the Government invests some money in transportation and storage of crops or make better rural roads,
it helps the farmers to sell their crops in the towns and create more job opportunities.
(iv) Identify, promote and locate industries in semi-rural areas where a large number of people may be
employed.
(v) Adopt measures to bring all children to schools, which require more buildings, more teachers and other
staff. It can create 20 lakh job opportunities in India.
(vi) Development of tourism can create additional employment to 35 lakh people every year.
(vii) Improve health facilities in India, which will provide a large number of employment opportunities.

4. How are activities in an economy classified based on employment conditions?

Ans. Organized Sector:
(i) Organized sector covers those enterprises or places of work where the terms of employment are regular
and therefore, people have assured work.
(ii) They are registered by the government and have to follow its rules and regulations which are given in
various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and
Establishments Act etc.
(iii) It is called organized because it has some formal processes and procedures. Workers in the organized
sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work
more they have to be paid overtime by the employer. They also get several other benefits from the employers.
(iv) They get paid leave, payment during holidays, provident fund, gratuity etc. They are supposed to get
medical benefits, under the laws, the factory manager has to ensure facilities like drinking water and a safe
working environment. When they retire, these workers get pensions as well.
Unorganized Sector:
(i) The unorganized sector is characterized by small and scattered units which are largely outside the control
of the government.
(ii) There are rules and regulations but these are not followed. Jobs here are low paid and often not regular.
(iii) There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not
secure. People can be asked to leave without any reason. When there is less work, such as during some
seasons, some people may be asked to leave. Jobs also depend on the whims of the employer.
(iv) This sector includes a large number of people who are employed on their own doing small jobs such as
selling on the street or doing repair work. Similarly, farmers work on their own and hire labourers as and
when they require.
5. Who are the vulnerable people in the unorganized sector, who need protection?
Ans. (i) In the rural areas, the unorganized sector mostly comprises landless agricultural labourers, small and
marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).
(ii) Nearly 80 per cent of rural households in India are in small and marginal farmer category. These farmers
need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage
facilities and marketing outlets.
(iii) In the urban areas, the unorganized sector comprises mainly workers in small scale industry, casual
workers in construction, trade and transport etc.
(iv) Those who work as street vendors, head load workers, garment makers, rag pickers etc. need protection.
(v) The casual workers in both rural and urban areas need to be protected.

MULTIPLE CHOICE QUESTIONS

1. When goods are produced by exploiting natural resources, it is an activity of the _______ sector.
(A) Primary (B) Secondary
(C) Tertiary (D) None of the above
Ans: (A)

2. ______ sector covers activities in which natural products are changed into other forms through ways of
manufacturing.
(A) Primary (B) Secondary
(C) Tertiary (D) None of the above
Ans: (B)

3. Which of the following sectors is the largest employer in India?

(A) Primary Sector (B) Secondary Sector
(B) Tertiary Sector (D) IT Sector
Ans: (A)

4. What is NREGA?
(A) National Rural Employment Guarantee Act
(B) National Regional Employment Act
(C) Nation’s Rural Employment Guarantee Act
(D) None of the above
Ans: (A)
5. On which of the following basis, the sectors are classified into public and private sector?
(A) Employment conditions
(B) The nature of economic activity
(C) Ownership of enterprises
(D) Number of workers employed in the enterprise
Ans: (C)

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