These NCERT questions and answers from Chapter 2 – Sectors of the Indian Economy will help you understand how different kinds of work are divided into primary, secondary, and tertiary sectors. This chapter shows how each sector contributes to the economy and how they are connected. It also explains key issues like employment and the role of the government. Practicing these basics will improve your answer-writing skills and prepare you for more advanced topics in economics.
Exercise Questions :-
Q1. Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.
Q.2 Choose the most appropriate answer:
(a) The sectors are classified into public and private sector 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
Answer: (iii) ownership of enterprises
(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology
Answer: (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
(iv) all intermediate and final goods and services
Answer: (ii) all final goods and services
(d) In terms of GVA the share of tertiary sector in 2017–18 is between _________ per cent.
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70
Answer: (iii) 50 to 60
Q.3 Match the following
| Problems faced by farming sector | 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 |
a) 1-D, 2-C, 3-E, 4-A, 5-B
b) 1-A, 2-B, 3-D, 4-C, 5-E
c) 1-C, 2-A, 3-B, 4-E, 5-D
d) 1-B, 2-D, 3-A, 4-C, 5-E
Answer:- a) 1-D, 2-C, 3-E, 4-A, 5-B
Q.4 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, Jet Airways, All India Radio
(a) (i) Potter, (ii) Doctor, (iii) Cobbler, (iv) MTNL
(b) (i) Tourist guide, (ii) Vegetable vendor, (iii) Cobbler, (iv) Jet Airways
(c) (i) Tailor, (ii) Teacher, (iii) Soldier, (iv) All India Radio
(d) (i) Dhobi, (ii) Lawyer, (iii) Police constable, (iv) Air India
Answer:- (b) (i) Tourist guide, (ii) Vegetable vendor, (iii) Cobbler, (iv) Jet Airways
Q.6 Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer:- Yes, the classification of economic activities into primary, secondary, and tertiary sectors is useful in many ways. All three sectors involve different types of activities to provide goods and services and help people earn income.
There is also a difference in the proportion of people employed in each sector and in how much they contribute to the GDP. Understanding these differences is helpful for the equitable growth of the economy, as it allows for better planning through the collective efforts and contributions of all sectors.
Q.7 For each of the sectors that we came across in this chapter why should one focus on employment and GVA? Could there be other issues which should be examined? Discuss
Answer:- Any country grows when everyone contributes to their full potential and gets enough income and support in return. Employment shows how many people get work, and GVA (Gross Value Added) shows how much value each sector adds to the economy.
But other issues also matter, like job quality, fair wages, working conditions, and whether the growth is equal and sustainable. So, besides employment and GVA, we must also focus on fairness and long-term development in all sectors.
Q.8 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.
Answer:- There are several types of work which adults do for living.
For Example:- Farmer, tailor, carpenter, doctor, teacher, shopkeeper, driver, mason, factory worker, electrician, plumber, bank employee, delivery boy, domestic helper, police, software engineer, rickshaw puller.
We can classify these into three sectors:
Tertiary sector – Provides services (e.g. doctor, teacher, driver)
Primary sector – Uses natural resources (e.g. farmer)
Secondary sector – Makes goods (e.g. tailor, carpenter, factory worker)
Q.9 How is the tertiary sector different from other sectors? Illustrate with a few examples. (Imp.)
Answer:- The tertiary sector is unique because it provides services instead of producing physical goods like the primary and secondary sectors do. It plays an important role by offering various services that assist both individuals and businesses in their daily activities and support other sectors of the economy.
For Example:- While the primary sector involves activities such as farming, fishing, and gathering natural resources, and the secondary sector includes manufacturing and factory work, the tertiary sector covers services like teaching, medical care, transportation, banking, and communication.
Q.10 What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas
Answer:- Disguised unemployment means more people are working in a job than actually needed, so some workers are not really contributing to the work. These extra workers could be removed without reducing the total output.
Example from urban areas: In a small shop, several people might be working but only a few are enough to manage the business. The rest are not fully busy or productive.
Example from rural areas: In a farm, many family members work on the land, but the farm does not need so many workers. Even if some stop working, the total crop production will not change much.
Q.11 Distinguish between open unemployment and disguised unemployment.
Answer:- Open unemployment refers to a situation where people are willing to work but cannot find any job. They remain completely jobless.
Example: A graduate actively looking for a job in a city but not getting one.
Disguised unemployment happens when more people are working than required, and some of them are not actually needed. Even if a few stop working, there will be no change in output.
Example: Five people working on a small farm where only three are needed.
Q.12 “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Answer:- I do not agree with this statement because the tertiary sector is playing a very active role in India’s growth.
- This sector includes services like teaching, transport, hospitals, banking, and mobile networks, which help people and support other sectors.
- In recent years, the income earned from the service sector has gone up and is now more than that of the other two sectors.
- Many new kinds of jobs have also come up in this sector, especially in IT and communication fields.
- It is also important in improving the day-to-day life of people by making services easily available.
Q.13 Service sector in India employs two different kinds of people. Who are these?
Answer:- The service sector in India has two types of workers:
- Skilled and educated people – Like doctors, teachers, software engineers, and bank workers. They have good jobs with better pay and job security.
- Unskilled or less-educated people – Like shop helpers, street vendors, cleaners, and delivery boys. They earn less and often don’t have job security.
Q.14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer:- Yes, I agree with this view. In the unorganised sector, workers often face unfair treatment.
– They usually don’t get fixed salaries, paid leaves, or health support.
– Their jobs are not secure — they can be removed anytime when the employer doesn’t need them.
– Many people in this sector are made to work extra hours without any extra pay.
– Even after working hard, their earnings are very low, making it hard to take care of their families.
Q.15 How are the activities in the economy classified on the basis of employment conditions?
Answer:- On the basis of employment conditions, economic activities are classified into two sectors: organized and unorganized sector.
Q.16 Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer:-
| Organised Sector | Unorganised Sector |
|---|---|
| Companies offer permanent jobs with job security. | Many workers face uncertainty as their jobs are not secure. |
| Employees receive regular salaries and several extra benefits. | Workers earn low wages and get no additional benefits. |
| Fixed working hours and paid overtime keep things fair. | Long working hours go unpaid in most cases. |
| Paid holidays, weekly offs, and leave benefits support workers’ needs. | Most jobs don’t include paid leave or proper rest days. |
| Health care, pensions, and insurance are part of the job benefits. | These workers lack access to basic facilities like health care or pension. |
| Rules made by the government are followed strictly. | Employers usually ignore labour laws and safety standards. |
Q.17 Explain the objective of implementing the MG NREGA 2005
Answer:- The main objective of implementing the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), 2005 is to provide guaranteed wage employment to rural people.
- It promises at least 100 days of paid work in a year to every rural household whose adult members are willing to do unskilled manual work.
- The Act aims to reduce poverty, stop migration, and create durable rural assets like roads, ponds, canals, etc.
- It also promotes social security by giving poor families a chance to earn income during times of no work.
In short, MGNREGA helps rural people live with dignity by giving them work, wages, and security.
Q.18 Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer:- Both the public and private sectors serve people but in different ways.
- The public sector includes services like government schools, public hospitals, and state-run buses. These are run by the government and provide basic services to everyone, especially the poor, often at low or no cost.
- Whereas the private sector includes private schools, clinics, shops, and companies like Airtel or Reliance. These are owned by individuals or companies and focus mainly on making a profit. Their services are usually faster but more expensive.
So, the public sector works for the welfare of the people, while the private sector works to earn profit. Both are important for the country’s growth.
Q.19 Discuss and fill the following table giving one example each from your area. (students to write from their own observation)
| Organisation Type | Well Managed Organisation | Badly Managed Organisation |
|---|---|---|
| Public Sector | ||
| Private Sector |
Q.20 Give a few examples of public sector activities and explain why the government has taken them up.
Answer:- Some examples of public sector activities include providing electricity through government companies, running public transport like buses and railways, offering free or low-cost education in government schools, and supplying clean drinking water and healthcare through public hospitals. The government takes up these activities because they are essential for everyone’s well-being, especially the poor. Private companies may not provide these services at affordable prices, so the government steps in to ensure that all people, whether rich or poor, have equal access to basic needs.
Q.21 Explain how public sector contributes to the economic development of a nation.
Answer:- The public sector plays a major role in the economic development of a country. It builds and maintains important services like transport, electricity, water supply, education, and healthcare. These services support other sectors like farming, manufacturing, and business to grow smoothly. The public sector also creates jobs for people and provides equal opportunities to all, including the poor. It helps reduce inequality and supports areas where private companies may not invest. By focusing on welfare and long-term growth, the public sector strengthens the foundation of the economy.
Q.22 The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
Answer:- Workers in the unorganised sector often face problems like low wages, unsafe working conditions, and poor health facilities. They do not get regular salaries, extra pay for overtime, or job security. For example, a construction worker may work long hours but still earn very little. They may also work without helmets, gloves, or safety gear, risking accidents and injury.
Similarly, workers in roadside shops or small factories do not get health benefits or paid leave. If they fall sick, they lose their income and might not afford treatment. That’s why these workers need protection through proper laws to ensure fair wages, safe working conditions, and access to health care.
