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Sectors of The Indian Economy : NCERT Exercise Questions


Q.1     Fill in the blanks using the correct option given in the bracket:
Employment in the service sector _________ increased to the same extent as production. (has / has not)
           (b) Workers in the _________ sector do not produce goods. (tertiary / agricultural)
           (c) Most of the workers in the _________ sector enjoy job security. (organised / unorganised
d) A _________ proportion of labourers in India are working in the unorganized sector. (large / small)
           (e) Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]
           (f) The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]  

Sol.     (a) has not
           (b) tertiary
           (c) Organised
           (d) large
           (e) natural, manufactured
           (f) interdependent

Q.2     The sectors are classified into public and private sector on the basis of:
           (a) Employment conditions
           (b) The nature of economic activity
           (c) Ownership of enterprises
           (d) Number of workers employed in the enterprise
Sol.     (c) Ownership of enterprises

Q.3     Production of a commodity, mostly through the natural process, is an activity in _________ sector.
           (a) Primary
           (b) Secondary
           (d) Information technology
Sol.     (b) Secondary

Q.4     GDP is the total value of _________ produced during a particular year.
           (a) All goods and services
           (b) All final goods and services
           (c)  All intermediate goods and services
           (d) All intermediate and final goods and services
Sol.     (b) All final goods and services

Q.5     In terms of GDP the share of tertiary sector in 2003 is _________
           (a) Between 20 to 30 per cent
           (b) Between 30 to 40 per cent
           (c) Between 50 to 60 per cent
           (d) 70 per cent
Sol.     (c) Between 50 to 60 percent

Q.6     Match the following:
           Problems faced by farming sector Some possible measures

Problems faced by farming sector Some possible measures
(1) Unirrigated land  (a) Setting up agro-based mills
(2) Low price 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  

 Sol.    1-(d), 2-(c), 3-(a), 4-(b)

Q.7     Find the odd one out and say why.
           (a) Tourist guide, dhobi, tailor, potter
           (b)Teacher, doctor, vegetable vendor, lawyer
           (c) Postman, cobbler, soldier, police constable
           (d) MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio
Sol.     (a) Tourist guide is working in tertiary sector, while others are in primary sector
           (b) Vegetable vendor is working in primary sector, while others are in tertiary sector
           (c) Cobbler is working in secondary sector, while others are in tertiary sector
           (d) SAHARA Airlines is in private sector, while others are in public sector 

Q.8     A research scholar looked at the working people in the city of Surat and found the following. Complete the table. What is the percentage of workers in the unorganized sector in this city?

Place of work Nature of employment Percentage of working People
In offices and factories registered with
the government
Organized 15
Own shops, office, clinics in marketplaces with
formal license
 Organized  15
People working on the street, construction workers,
domestic workers 
 Unorganized 20 
 Working in small workshops usually not registered 
with the government
Unorganized  50 

Sol.        70%

Q.9     Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Sol.     The classification of economic activities into primary, secondary and tertiary sector is useful from many perspectives. It helps the economists to understand the problems and opportunities in an economy in a better way. The government can utilize the information to bring various welfare programmes and supportive measures to grow the economy so that there could be better employment generation.

Q.10     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.
Sol.       GDP gives an overall picture of the economy and contribution by various sectors. It gives a ready- reference for policymakers. Hence, GDP has its importance in analysis of economic performance. All the economic activities are done with the sole purpose of earning livelihood and hence data regarding employment generation are important. Apart from these information, we also need to look at the growth pattern in various sectors; on different parameters.

Q.11     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.
Sol.       Some of the examples are as follows:

Primary sector Secondary Tertiary sector
A farmer working in his field, a dairy
owner selling milk and dairy 
products, a fisherman selling fish  
An engineer working in a 
factory, a foreman
working in a factory
A chartered accountant,a 
transporter, a banker, a 
teacher etc.

Q.12     How is the tertiary sector different from other sectors? Illustrate with a few examples.

Tertiary sector Other sectors
Does not produce tangible goods Produces tangible goods
Machines are not required Machines are required
Relies more on intellectual capability 
of workers
Relies more on physical labour
or workers
Many services can be provided through
telecommunication to large geographical
The finished products need to be 
physically supplied to the end user.
Example: work of a designer, chartered accountant  Example: work of a mechanic, mason,

Q.13     What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Sol.       When a person appears to be working but his potential is not being fully utilised; he is facing disguised unemployment. The worker; in this case; is working in a particular occupation because he does not have anything better to do. Compulsion; rather than choice is the main deciding factor in this case. In case of rural areas, many people may be working on a small plot of land when the work could have been done by a few people. The additional people are working because they do not have anything better to do. This is the classic case of hidden unemployment. In urban areas; a shop may be shared by many brothers and all of them may be working in the same shop. They could have diversified into more gainful employment but sticking to their shop because they may not be getting opportunities.

Q.14     Distinguish between open unemployment and disguised unemployment.
Sol.       When a person is without work, this is called unemployment. When a person is doing a job but is unable to fulfill his potential because he is not getting something better to do, this is called disguised unemployment. The person may be sticking to the occupation because of various reasons; like lack of employment opportunities, lack of resources, etc.

Q.15     “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Sol.       This statement is partially true. When we look at the growth of tertiary sector from 1973 to 2003, then it can be said that this sector has shown good growth. Moreover, the tertiary sector is the largest contributor to the GDP in 2003; which is another positive for this sector. But when the percentage of employment is analysed, tertiary sector has failed to generate employment which could match with its contribution in the GDP. Hence, it can be said that the tertiary sector has not grown in terms of employment generation.

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