CBSE Important Questions for Class 10 Social Science Economics Chapter 2: Chapter 2 of Class 10 CBSE Economics, "Sectors of the Indian Economy," discusses different types of economic activities categorized into Primary, Secondary, and Tertiary sectors.
It covers the role of these sectors in GDP, the distinction between organized and unorganized sectors, and public vs. private sectors. Important questions include differences between sectors, reasons for disguised unemployment, the role of the service sector, and government initiatives to support various sectors.
Understanding employment patterns, GDP contribution, and sectoral shifts is crucial. Diagram-based and case study questions are common in exams, focusing on real-world applications of economic concepts.
Chapter 2 of Class 10 CBSE Economics, "Sectors of the Indian Economy," is crucial for understanding how different sectors - Primary, Secondary, and Tertiary—contribute to economic growth and employment. It highlights the importance of organized vs. unorganized sectors and the role of public and private sectors in development.
This chapter helps students analyze sectoral shifts in GDP, employment patterns, and disguised unemployment. Important exam questions include sectoral comparisons, reasons for unemployment, and government measures to boost sectors.
Understanding these concepts is essential for grasping India’s economic structure, policy decisions, and sustainable development, making it a vital topic for students.
Chapter 2 of Class 10 CBSE Economics, "Sectors of the Indian Economy," explains the Primary, Secondary, and Tertiary sectors, their roles in GDP, employment patterns, and economic development.
It also covers organized vs. unorganized sectors and public vs. private sectors. Understanding these concepts is crucial for exams. Below, we have provided a PDF containing important questions to help students prepare effectively.
CBSE Important Questions for Class 10 Social Science Economics Chapter 2 PDF
(1 mark Questions)
1. Agriculture, dairy, fishing, and forestry are examples of ________.
(A) tertiary Sector
(B) secondary Sector
(C) primary Sector
(D) none of the above
Ans. (C) primary Sector
2. The ___________covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.
(A) secondary sector
(B) tertiary sector
(C) primary sector
(D) none of the above
Ans. (A) secondary sector
3. Which of the following comes under the tertiary sector?
(A) transport (B) communication
(C) both (A) & (B) (D) none of the above
Ans. (C) both (A) & (B)
4. Service sector also includes some essential services that may not directly help in the production of goods. State whether true or false.
(A) true
(B) false
Ans. (A) true
5. __________ shows how big the economy of a country is.
(A) GSDP (B) GDP
(C) PPP (D) None of the above
Ans. (B) GDP
6. In the past 100 years, there has been a further shift from _______ to ______ in developed countries. This has become the most important in terms of total production.
(A) secondary to the tertiary sector
(B) primary to the tertiary sector
(C) primary to the secondary sector
(D) none of the above
Ans. (A) secondary to the tertiary sector
7. In India, ____________ was the least producing sector in 2010-11.
(A) primary sector
(B) secondary sector
(C) tertiary sector
(D) quaternary sector
Ans. (A) primary sector
8. In India, which sector grew the maximum from 1970-71 to 2010-11?
(A) primary sector
(B) secondary sector
(C) tertiary sector
(D) quaternary sector
Ans. (C) tertiary sector
9. In 1970-71, which sector produced the maximum in India?
(A) tertiary sector
(B) secondary sector
(C) primary sector
(D) quaternary sector
Ans. (C) primary sector
10. Which of the following statements are true regarding the services sector?
(A) As income levels rise, certain sections of people start demanding many more services like eating out, tourism, and shopping.
(B) Over the past decade or so, certain new services, such as those based on information and communication technology, have become important and essential.
(C) In the year 2010-11, the tertiary sector emerged as the largest producing sector in India, replacing the primary sector.
(D) All of the above.
Ans. (D) All of the above.
CBSE Important Questions for Class 10 Social Science Economics Chapter 2 (2 mark)
16. Explain how the public sector contributes to the economic development of a nation.
Sol. In the public sector, ownership of assets and delivery of services is under the government. The government spends huge amounts of money in providing various services to the public at
reasonable costs. The government thus contributes towards the economic development of the nation: By development of infrastructure, i.e.,
1. Construction of roads, national highways, flyovers, metro-rails, railway lines, irrigation through dams, etc.
2. The government provides an impetus to industrial growth by supplying electricity at affordable rates.
3. By running schools and providing good quality of education, the government is trying to remove illiteracy and take the nation forward.
16. Why is NREGA also called the Right to work?
Explain the objectives of National Rural Employment Guarantee Act 2005.
Sol. Every state or region in India has potential for increasing the income and employment in that area. Recognising this, the Central Government in India has passed an act called the National Rural Employment Guarantee Act 2005,
Main objectives of the NREGA 2005 are:
• to implement the Right to Work in 200 districts of India.
• to guarantee 100 days of employment in a year by the Government. In case the Government
fails, it offers unemployment allowance.
• to give preference to the type of work that will help increase the production from land.
17. With the example of sugarcane, explain the interdependence of all the three sectors of the economy.
Sol. The primary sector involves production at the most basic level, i.e., through exploitation of natural resources. Cultivation of sugarcane is an agricultural activity which comes under the
primary sector. Raw materials from the primary sector are converted into processed goods through manufacturing in the secondary sector. Using sugarcane as raw material, jaggery and sugar is made in the factories. The tertiary or service sector provides support to the process of production.
It includes transportation, storage, marketing and sale of products. For instance, transportation of sugarcane from the fields to the sugar mills. Further on, the transportation of jaggery and sugar from factories and sugar mills to the markets.
The farmer (Primary sector) also needs fertilisers and seeds which are processed in some factories (Secondary sector) and which will be delivered to his doorstep by some means of transportation (Tertiary sector). In this way, for every little process there is interdependence of the three sectors of the economy on each other.
18. “The problem of underemployment is not confined only to agriculture”. Support the statement with examples.
Sol. The problem of underemployment is not confined only to agriculture. It can also happen in other sectors.
• For example, 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 other odd jobs. Many of them don’t find work every day.
• Similarly, we see other people of the service sector on the street pushing a cart or selling something where they may spend the whole day but earn very little. They are doing such work only due to the lack of better employment opportunities.
• The unorganised sector includes small and scattered units outside the government control. 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.
19. What are final goods and intermediate goods? How do they help in calculating (GDP) Gross Domestic Product?
Sol. • Final goods are goods that are ultimately consumed by the consumer rather than used in the production of another good.
• Intermediate goods are goods used as inputs in the production of final goods and services. For example, a car sold to a consumer is a final good; components such as a tyre sold to the
car manufacturer is an intermediate good. The value of final goods already includes the value of all intermediate goods that are used in making the final good.
• The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year.
20. Explain any three ways to solve the problem of underemployment.
Sol. There are people who are capable of better work and earning more than what they are getting. The reason for this is that better jobs for which they are qualified are not available. Such people are termed as underemployed, e.g., a graduate teacher driving a taxi. Underemployment is most prevalent in the primary or agricultural sector. Three ways to solve the problem of
underemployment:
1. Provision of loans may help in creating jobs for disguised unemployed and underemployed Workers. The loan money can be used for the promotion of economic activity of the
family adding to the family’s earning or for setting up a cottage industry.
2. Another way is to promote and locate industries and services in semi-rural areas where a large number of people may be employed.
Example: Setting up a dal mill, opening a cold storage, starting or promoting honey collection.
3. If local banks give credit to farmers at a reasonable rate of interest, they will be able to buy agricultural inputs and increase productivity.
4. Centres for vegetables and fruit processing, health centres, educational institutions, tourism and IT centres will certainly help in creating jobs.
(3 mark Questions)
23. Describe the importance of Primary sector in the Indian economy.
Sol. Importance of Primary sector:
1. Primary Sector provides the basic needs of economy for food and mineral ores.
2. It produces some of the raw materials (like jute, cotton, coal extracted from mines) for the industrial sector.
3. The Primary sector continued to be the largest employer in the economy even in the year 2000, the reason being that Secondary and Tertiary sectors still do not create enough
jobs.
4. The agricultural population in the Primary sector provides a very large market of consumers for the Secondary sector (for buying finished products like clothes, goods
of daily need, fertilizers, etc.).
24. How can we create more employment in secondary and tertiary sectors in rural India?
Sol. 1. Investing in basic agricultural infrastructure like construction of dams and canals for irrigation can lead to a lot of employment generation within the agricultural sector itself
reducing the problem of under employment.
2. If the government invests some money in the storage and transportation of crops, or makes better rural roads so that mini-trucks reach everywhere, several farmers can continue to
grow and sell these crops throughout the year. This activity can provide productive employment to not just farmers but also others such as those in services like transport or trade.
3. Providing credit at a reasonable rate of interest to help farmers buy seeds, fertilisers, agricultural equipments, pump sets etc. can generate employment in rural banking.
4. The government/banks can provide loans at cheap rates to the small farmers to improve their irrigational facilities like constructing a well so that they can irrigate their land well
and get two to three crops a year instead of one. Thus more people can be employed in the same field.
5. Another way is to promote and locate industries and services in semi-rural areas where a large number of people may be employed. For example, setting up a dal mill, opening a cold storage, starting or promoting honey collection, etc.
25. Explain reasons for the rising importance of the tertiary sector in India.
Sol. Tertiary sector or service sector plays a very significant role and its importance is rising day by day:
1. Greater the development of primary sector and secondary sector more would be the demand for Services.
2. Tertiary sector has become the largest producer in India because various kinds of Services such as hospitals, educational institutions, post and telegraph services,
police stations, courts, village administrative offices, transport, banks, insurance companies, etc. are required.
3. Even development of agriculture and industry leads to the development of services such as transport, trade and storage, etc.
4. With the rise in income, demand for more services is rising.
For example, eating out in restaurants, tourism, malls and shopping complexes, schools, professional training, etc.
5. New services like Information Technology and outsourcing have become very important for modern day trade and industry. Unfortunately, the rapid growth of the service sector in India has not yet shown the expected corresponding increase in employment.
(4 mark Questions)
38. Case Based:
The topic of whether manufacturing or services should be prioritized as the preferred path for India’s economy is a recurring subject of discussion in public forums. During the early years
of this century, when India’s software exports were experiencing significant growth, there was a question as to why India’s services sector couldn’t surpass manufacturing in driving the economy forward.
This proposition challenged the conventional model of economic development, as most successful economies had prioritized industrial expansion first. It is understandable that Indian economic policy makers felt frustrated.
The economic reforms implemented in 1991 primarily focused on manufacturing. However, despite the substantial reduction in tariffs and the dismantling of the bureaucratic system known as the ‘licence- permit Raj’, the share of manufacturing in the economy did not increase.
It is important to note that the significance of India’s manufacturing sector should not be solely measured by its size. There has been a qualitative transformation since 1991, with an impressive improvement in the range and quality of products manufactured in India.
1. How different sector agriculture, manufacturing and service are interlinked to each other?
Sol. Agriculture, manufacturing, and services are interconnected sectors in the economy. Agriculture provides raw materials to manufacturing, which transforms them into goods. Services support both by offering transportation, logistics, and financial services. A strong agricultural base can lead to a thriving manufacturing sector, which, in turn,drives demand for services, creating a well- rounded economy.
2. How do we count the various goods and services and know the total production in each sector?
Sol. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country.
CBSE Important Questions for Class 10 Social Science Economics Chapter 2 (5 mark)
33. How can workers in the unorganised sector be protected? Explain giving examples of rural and urban areas.
Sol. There is need for protection and support of the workers in the unorganised sector:
1. In the rural areas, this sector comprises of landless agricultural labourers, small and marginal farmers, share croppers and artisans (weaners, carpenters, goldsmiths).
These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.
2. In urban areas, workers in the small scale industry, casual workers in construction, trade and transport, street vendors, head load workers, garment makers, ragpickers etc. are
all a part of the unorganised sector. Small scale workers need government aid for procuring raw materials and marketing of their goods.
3. The government must make concerted efforts to ensure that workers in this sector are not exploited and earn fair wages. They must also be provided with job security and other
benefits.
34. Describe certain activities of public interest on which the government has to focus on priority basis.
Sol. Activities of public interest on which the government needs to focus on a priority basis:
1. Education- The government must provide adequate education facilities in all rural and urban areas. The government must necessarily focus on education for girls so that all girls are
able to acquire atleast secondary level schooling. Running proper schools and providing quality education, particularly elementary education, is the duty of the government.
2. Health and Nutrition-
1. Basic health care facilities are a must for all. Establishment of government hospitals, clinics and dispensaries, especially in rural areas, to provide subsidized and unadulterated medicines to the poorer sections of society.
2. An effective Public Distribution System— proper functioning of ration shops and equitable distribution of food grains is very essential.
3. Transportation. A well developed public transport system to make it easy for general public to commute.
4. Electricity. It is the duty of the government to provide electricity and water at reasonable rates to the common man and prevent him from exploitation by private companies.
35. Compare the employment conditions prevailing in the Organized and Unorganized sectors.
Sol. Organized sector:
1. In this sector, terms of employment are regular and people have assured work.
2. They are registered by the government.
3. Workers enjoy security of employment, they have to work for fixed hours, they are paid overtime and enjoy several other benefits like paid leave, payment during holidays,
Provident Fund, gratuity, pension, retirement benefits, medical benefits, etc.
4. Entities under Organized sector have to follow the rules and regulations which are given in various laws (Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and
Establishment Act). Unorganized sector:
1. In this sector, employment is not secure and jobs are irregular.
2. Here government rules are not followed as they are outside the control of the government.
3. Usually, they offer low-paid jobs, no provision for overtime, paid leave, holiday leave or sick leave.
4. Employees can be asked to leave without any reason. One can also see a large number of under-employed workers in this sector.
Exam-Oriented Preparation – Focuses on key topics, commonly asked questions, and important concepts for scoring well.
Conceptual Clarity – Helps in understanding the Primary, Secondary, and Tertiary sectors, GDP contribution, and employment patterns.
Practice for Application-Based Questions – Enhances problem-solving skills through case studies and real-life economic scenarios.
Efficient Revision – Summarizes the chapter’s essential points for quick revision before exams.
Boosts Confidence – Familiarizes students with different question types, improving performance and reducing exam stress.
Time Management – Helps in practicing structured answers, improving speed and accuracy in exams.