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NCERT Class 10 Social Science Sectors of the Indian Economy: Exercise Solutions

Point-by-point answers for every question of End-of-chapter exercises in NCERT's Class 10 Social Science book, chapter “Sectors of the Indian Economy”, written by Shishya. Each question is in our own short words; open the NCERT chapter for the exact wording and figures.

1. Exercises Q1

   Fill in the blanks with the right option: (i) employment in the service sector ___ increased to the same extent as production (has / has not) (ii) workers in the ___ sector do not produce goods (tertiary / agricultural) (iii) most workers in the ___ sector have job security (organised / unorganised) (iv) a ___ share of labourers in India work in the unorganised sector (large / small) (v) cotton is a ___ product and cloth is a ___ product (natural / manufactured) (vi) the activities of the primary, secondary and tertiary sectors are ___ (independent / interdependent)

   1. Employment in the service sector has not increased to the same extent as production.
   2. Workers in the tertiary sector do not produce goods.
   3. Most workers in the organised sector have job security.
   4. A large share of labourers in India work in the unorganised sector.
   5. Cotton is a natural product and cloth is a manufactured product.
   6. The activities of the primary, secondary and tertiary sectors are interdependent.

   Answer: (i) has not (ii) tertiary (iii) organised (iv) large (v) natural, manufactured (vi) interdependent

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2. Exercises Q2(a)

   MCQ: sectors are classified into public and private on the basis of (i) employment conditions (ii) the nature of economic activity (iii) ownership of enterprises (iv) the number of workers employed

   1. The chapter explains that economic activities are grouped into public and private sectors based on who owns the business.
   2. This specific classification method focuses on the ownership of the enterprises rather than the type of work or number of staff.
   3. Other criteria like the nature of activity are used to separate primary, secondary, and tertiary sectors instead.

   Answer: (iii) ownership of enterprises

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3. Exercises Q2(b)

   MCQ: producing a good mostly through a natural process is an activity of the ___ sector: (i) primary (ii) secondary (iii) tertiary (iv) information technology

   1. The primary sector involves activities that depend on natural resources and biological processes.
   2. Producing goods through natural processes, like growing crops or dairy farming, is a key feature of the primary sector.
   3. The secondary sector focuses on manufacturing, while the tertiary sector provides services, so they do not fit this description.

   Answer: (i) primary

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4. Exercises Q2(c)

   MCQ: GDP is the total value of ___ produced in a 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

   1. GDP is the value of goods and services produced in a country during a year.
   2. Only final goods and services are counted, because the value of intermediate goods is already included in the value of the final goods; counting them again would count the same value twice.

   Answer: (ii) all final goods and services

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5. Exercises Q2(d)

   MCQ: in terms of GVA, the tertiary sector's share in 2017-18 is between ___ per cent: (i) 20 to 30 (ii) 30 to 40 (iii) 50 to 60 (iv) 60 to 70

   1. The tertiary sector became the largest producing sector in India by 2017-18.
   2. Its share in Gross Value Added was higher than the other sectors during that year.
   3. The specific percentage range for this share falls between 50 and 60 per cent.

   Answer: (iii) 50 to 60

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6. Exercises Q3

   Match the farm problems (1 unirrigated land, 2 low prices for crops, 3 debt burden, 4 no job in the off season, 5 forced to sell grain to local traders soon after harvest) with the measures: (a) agro-based mills (b) cooperative marketing societies (c) government procurement of food grains (d) canals built by the government (e) bank credit at low interest.

   1. Unirrigated land is addressed by the government constructing canals to provide water for farming.
   2. Low crop prices are countered when the government procures food grains to ensure farmers get fair rates.
   3. The debt burden is reduced by banks providing credit at low interest rates instead of high-cost loans.
   4. Lack of jobs in the off season is solved by setting up agro-based mills that process agricultural produce.
   5. Forced selling to local traders is prevented by cooperative marketing societies that help farmers sell collectively.

   Answer: 1-(d), 2-(c), 3-(e), 4-(a), 5-(b)

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7. Exercises Q4

   Find the odd one out and say why: (i) tourist guide, dhobi, tailor, potter, farmer (ii) teacher, doctor, vegetable vendor, lawyer (iii) postman, cobbler, soldier, police constable (iv) MTNL, Indian Railways, Air India, All India Radio

   1. (i) Farmer: farming is a primary sector activity, while the tourist guide, dhobi, tailor and potter make goods or provide services (secondary and tertiary sectors).
   2. (ii) Vegetable vendor: a small trader, usually in the unorganised sector, while the teacher, doctor and lawyer are trained professionals.
   3. (iii) Cobbler: works for himself in the private sector, while the postman, soldier and police constable are employed by the government.
   4. (iv) Air India: it is now owned by a private company, while MTNL, Indian Railways and All India Radio are run by the government.

   Answer: (i) farmer; (ii) vegetable vendor; (iii) cobbler; (iv) Air India

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8. Exercises Q5

   A survey of working people in Surat: organised work in registered offices and factories 15%; organised work in licensed shops, offices and clinics 15%; unorganised street, construction and domestic work 20%; work in small unregistered workshops (share not given). Complete the table and find the share of workers in the unorganised sector.

   1. Organised sector: registered offices and factories 15% + licensed shops, offices and clinics 15% = 30%.
   2. The four rows must add up to 100%, so small unregistered workshops = 100% − 15% − 15% − 20% = 50%.
   3. These workshops are not registered with the government, so they belong to the unorganised sector.
   4. Unorganised sector = street, construction and domestic workers 20% + small workshops 50% = 70%.

   Answer: Small workshops (unorganised) = 50%; workers in the unorganised sector in Surat = 70%

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9. Exercises Q6

   Is the classification of economic activities into primary, secondary and tertiary useful? Explain how.

   1. Classification helps us analyze the pattern of total production and employment in the economy.
   2. It allows us to identify which sectors are dominant in terms of output and workforce size.
   3. By grouping activities based on their nature, we can understand the interdependence between sectors.
   4. This method reveals problems and solutions related to economic growth and resource allocation.

   Answer: Yes, the classification is useful because it helps analyze production and employment patterns, identify dominant sectors, and understand the interdependence of economic activities.

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10. Exercises Q7

    For each sector in this chapter, why should one focus on employment and GVA? Could other issues be examined? Discuss.

    1. Employment and GVA are key indicators to measure the size and contribution of each sector to the economy.
    2. Focusing on these metrics helps understand the changing roles of sectors, such as the rapid growth of the service sector.
    3. Other issues like the protection of workers in the unorganised sector should also be examined.
    4. Problems caused by changes in sectoral roles, such as unemployment, need to be addressed by the government.

    Answer: Employment and GVA measure sectoral contribution, while other issues like worker protection and unemployment also require attention.

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11. Exercises Q8

    List the kinds of work adults around you do for a living. How can you classify them? Explain your choice.

    1. Adults around us engage in various activities such as farming, manufacturing goods, or providing services like teaching and driving.
    2. These activities can be classified into three main sectors based on the nature of the work involved.
    3. The primary sector includes work related to extracting natural resources, such as agriculture and mining.
    4. The secondary sector covers activities that involve manufacturing or processing raw materials into finished products.
    5. The tertiary sector consists of services that support the primary and secondary sectors, such as transport, banking, and retail.
    6. This classification is useful because it helps in understanding the economic structure and the contribution of different activities to the economy.

    Answer: Work can be classified into primary, secondary, and tertiary sectors based on whether it involves extraction, manufacturing, or services.

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12. Exercises Q9

    How is the tertiary sector different from the other sectors? Illustrate with examples.

    1. The tertiary sector is distinct because it provides services that support the primary and secondary sectors rather than producing physical goods.
    2. These activities do not create a tangible product on their own but act as an aid for the production and trade of goods.
    3. Examples of such services include transporting goods via trucks or trains, storing them in godowns, and facilitating communication through telephone or letters.
    4. Financial support like borrowing money from banks is also a tertiary activity that helps in production and trade.
    5. Because these activities generate services instead of goods, this sector is also commonly known as the service sector.

    Answer: The tertiary sector differs from others by providing services like transport, storage, and banking that aid production and trade, rather than creating goods directly.

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13. Exercises Q10

    What is disguised unemployment? Give one example each from urban and rural areas.

    1. Disguised unemployment occurs when more people work in a sector than actually needed, so removing some workers does not reduce total output.
    2. In rural areas, a small farmer with five family members working on a small plot may have two members leave for factory jobs without affecting agricultural production.
    3. In urban areas, casual service workers like painters or plumbers may spend the whole day working but earn very little because they lack better opportunities.

    Answer: Disguised unemployment is hidden underemployment where excess labor in a sector does not affect production, seen in rural farming families and urban casual workers.

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14. Exercises Q11

    Distinguish between open unemployment and disguised unemployment.

    1. Open unemployment is visible when people do not have jobs and are clearly seen as unemployed.
    2. Disguised unemployment is hidden because people appear to be working but are actually underemployed.
    3. In disguised unemployment, removing some workers does not affect the total production output.
    4. Open unemployment involves a lack of work, while disguised unemployment involves working less than one's potential.

    Answer: Open unemployment is visible joblessness, whereas disguised unemployment is hidden underemployment where extra workers do not increase production.

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15. Exercises Q12

    "The tertiary sector plays no significant role in the development of the Indian economy." Do you agree? Give reasons.

    1. I do not agree with the statement because the tertiary sector has become the largest producing sector in India by 2017-18.
    2. Production in the tertiary sector increased the most over the forty years between 1977-78 and 2017-18 compared to other sectors.
    3. Development in agriculture and industry creates a higher demand for services like transport, trade, and storage.
    4. Rising income levels lead people to demand more services such as private hospitals, schools, and tourism.
    5. New services based on information and communication technology have become essential and their production is rising rapidly.

    Answer: The tertiary sector plays a significant role as it is now the largest producing sector and drives economic development through increased service demand and new technologies.

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16. Exercises Q13

    The service sector in India employs two different kinds of people. Who are they?

    1. At one end, a small number of services hire workers who are highly educated and skilled.
    2. At the other end are a very large number of workers in services such as small shopkeepers, repair persons and transport persons.
    3. The second group barely earn a living, but they do this work because they have no better opportunities.

    Answer: Highly skilled, educated workers in a limited number of services, and a very large number of low-paid workers such as small shopkeepers, repair persons and transport persons.

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17. Exercises Q14

    Workers are exploited in the unorganised sector. Do you agree? Give reasons.

    1. Agree that workers in the unorganised sector are exploited because their earnings are low and not regular.
    2. These jobs lack security and other benefits, forcing many to accept poor working conditions.
    3. Workers from scheduled castes, tribes, and backward communities face social discrimination along with low pay.
    4. Many workers are pushed into the unorganised sector because some employers avoid the rules that protect workers, so they work without paid leave, holidays or medical benefits.

    Answer: Yes, workers in the unorganised sector are exploited due to low irregular wages, lack of job security, and social discrimination.

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18. Exercises Q15

    How are economic activities classified on the basis of employment conditions?

    1. Economic activities are divided into two main categories based on employment conditions.
    2. These categories are the organised sector and the unorganised sector.
    3. This classification helps in analysing the pattern of employment in different sectors.

    Answer: Economic activities are classified into organised and unorganised sectors based on employment conditions.

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19. Exercises Q16

    Compare employment conditions in the organised and unorganised sectors.

    1. Workers in the organised sector have secure jobs with regular income and benefits, while unorganised workers face insecure employment with irregular and low earnings.
    2. The organised sector provides job security and other benefits, whereas unorganised sector jobs lack security and do not offer additional benefits.
    3. Many workers are forced into the unorganised sector because organised sector opportunities expand slowly and some enterprises evade labour laws to cut costs.

    Answer: Organised sector offers secure, regular, and beneficial jobs, while the unorganised sector provides insecure, irregular, and low-paid work without benefits.

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20. Exercises Q17

    Explain the objective of MGNREGA 2005 (or Viksit Bharat-G RAM G 2025).

    1. MGNREGA 2005 guaranteed 100 days of employment in a year, by the government, to everyone in rural areas who is able to work and needs work.
    2. If the government failed to provide this work, it would pay unemployment allowances to the people.
    3. Preference was given to types of work that would increase production from land in future.
    4. In 2025 the Act was replaced by Viksit Bharat-G RAM G 2025, which carries on the aim of guaranteeing jobs and livelihoods in rural areas.

    Answer: The objective is to guarantee work (100 days a year under MGNREGA 2005) to rural people who need it, with an allowance if work is not given, through work that also raises the land's production.

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21. Exercises Q18

    Using examples from your area, compare the activities and functions of the private and public sectors.

    1. Private sector activities are owned by individuals or companies and aim to make profit, such as local private shops or transport services.
    2. Public sector activities are owned by the government and aim to provide essential services to the people, such as government hospitals or public schools.
    3. Private sector functions focus on efficiency and customer satisfaction through competition, while public sector functions focus on welfare and equal access for all citizens.

    Answer: The private sector is profit-driven and owned by individuals, whereas the public sector is welfare-driven and owned by the government to serve the public interest.

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22. Exercises Q19

    Give one example each from your area of a well-managed and a badly managed organisation in the public sector and in the private sector.

    1. Select a public sector entity in your area that provides reliable services, such as a government hospital or railway station, as an example of a well-managed organisation.
    2. Identify a public sector entity in your area facing issues like delays or poor maintenance, such as a local post office or municipal office, as an example of a badly managed organisation.
    3. Choose a private sector company in your area that operates efficiently with good customer service, such as a reputable bank branch or telecom provider, as a well-managed private organisation.
    4. Pick a private sector business in your area known for poor service or mismanagement, such as a local shop with frequent complaints or a poorly maintained private clinic, as a badly managed private organisation.

    Answer: Examples depend on your specific area, but typically include government hospitals (well-managed public), local post offices (badly managed public), reliable banks (well-managed private), and inefficient local shops (badly managed private).

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23. Exercises Q20

    Give a few examples of public sector activities and explain why the government has taken them up.

    1. Public sector activities include running railways, post offices, and generating electricity.
    2. The government undertakes these because they require large sums of money that the private sector cannot afford.
    3. Collecting money from thousands of users is difficult, so the government bears part of the cost to ensure availability.
    4. Providing health and education facilities for all is a government duty to support human development.
    5. Governments also buy wheat and rice at fair prices to store and sell cheaply to consumers via ration shops.

    Answer: The government takes up public sector activities like railways and electricity because they need heavy spending, are hard to monetize, and are essential for social welfare and development.

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24. Exercises Q21

    How does the public sector contribute to a nation's economic development?

    1. The government builds and runs things that need very large spending, such as railways, roads, bridges, harbours, electricity generation and irrigation through dams, which the private sector would not provide at a reasonable cost.
    2. It sells some services, such as electricity, at low prices so that small-scale industries and others can afford them.
    3. It buys wheat and rice from farmers at a fair price, stores them, and sells them at a lower price to consumers through ration shops.
    4. It runs schools and hospitals so that education and health care reach everyone, including the poor.
    5. Together these support farmers, industries and people's well-being, which drives the nation's development.

    Answer: The public sector builds costly facilities like railways, power and irrigation, supplies them at affordable prices, supports farmers and consumers through procurement and ration shops, and provides health and education for all.

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25. Exercises Q22

    Workers in the unorganised sector need protection on wages, safety and health. Explain with examples.

    1. Workers in the unorganised sector often receive very low salaries and are not paid a fair wage, such as casual construction workers or street vendors.
    2. These jobs lack security and regular earnings, leaving workers vulnerable to exploitation without job stability or other benefits.
    3. Workers face social discrimination and lack proper safety and health protections, especially those from scheduled castes and tribes in small-scale industries.

    Answer: Unorganised sector workers need protection against low wages, job insecurity, and lack of safety and health standards.

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26. Exercises Q23

    In Ahmedabad (1997-98), 11,00,000 of 15,00,000 workers were in the unorganised sector; the city's income of Rs 60,000 million included Rs 32,000 million from the organised sector. Present this as a table, and suggest ways to create more jobs in the city.

    1. Organised sector workers = 15,00,000 − 11,00,000 = 400,000; unorganised sector workers = 11,00,000; total 15,00,000.
    2. Income of the unorganised sector = Rs 60,000 million − Rs 32,000 million = Rs 28,000 million; organised sector income = Rs 32,000 million; total Rs 60,000 million.
    3. Table: Organised — 400,000 workers, Rs 32,000 million; Unorganised — 11,00,000 workers, Rs 28,000 million; Total — 15,00,000 workers, Rs 60,000 million.
    4. So 400,000 organised workers earn more than 11,00,000 unorganised workers together, a sign of low earnings in the unorganised sector.
    5. More jobs could come from helping small units with cheap loans, developing local trade, tourism, crafts and services, and from protecting and supporting workers in the unorganised sector.

    Answer: Organised: 400,000 workers, Rs 32,000 million; unorganised: 11,00,000 workers, Rs 28,000 million. Jobs can grow through cheap credit for small units, local trade, crafts, tourism and services, and support for unorganised workers.

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27. Exercises Q24

    GVA in Rs crore - 2001-02: primary 13,23,000, secondary 10,40,000, tertiary 19,31,000; 2021-22: primary 24,79,400, secondary 40,73,000, tertiary 73,25,000. (i) Find each sector's share for both years (the book's question names "2000 and 2013"; the table's years are used). (ii) Show the data as a bar diagram. (iii) What can we conclude?

    1. (i) 2001-02 total GVA = 13,23,000 + 10,40,000 + 19,31,000 = 42,94,000 crore.
    2. (i) 2001-02 shares: primary 13,23,000 ÷ 42,94,000 = 30.8%; secondary 10,40,000 ÷ 42,94,000 = 24.2%; tertiary 19,31,000 ÷ 42,94,000 = 45.0%.
    3. (i) 2021-22 total GVA = 24,79,400 + 40,73,000 + 73,25,000 = 1,38,77,400 crore.
    4. (i) 2021-22 shares: primary 24,79,400 ÷ 1,38,77,400 = 17.9%; secondary 40,73,000 ÷ 1,38,77,400 = 29.3%; tertiary 73,25,000 ÷ 1,38,77,400 = 52.8%.
    5. (ii) Draw two bars, one for each year, each split into the three sectors' shares (or three bars per year), with the share in per cent on the vertical axis.
    6. (iii) The primary sector's share fell, the secondary sector's share rose a little, and the tertiary sector grew to more than half of GVA, becoming the largest sector.

    Answer: 2001-02: primary 30.8%, secondary 24.2%, tertiary 45.0%; 2021-22: primary 17.9%, secondary 29.3%, tertiary 52.8% — the tertiary sector now produces more than half of GVA while the primary sector's share has fallen.

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