Sector of the Indian Economy

Previous Years' CBSE Board Questions

1. Choose the correct option to fill the blank. (2024)
Removing barriers or restrictions on business and trade set by the
government is called as ________
(a) Disinvestment
(b) Special Economic Zones
(c) Liberalisation
(d) Foreign Direct Investment
Answer. (c) Liberalization
2. Which one of the following is an example of organized sector activities?
(2024)
(a) A farmer irrigating his field.
(b) A handloom weaver working in her house.
(c) A headload worker carrying cement.
(d) A teacher taking classes in a government school.
Answer. (d) A teacher taking classes in a government school.
3. Differentiate between Public and Private Sector. (2024)
Answer. Differentiate between public and private sector.
Any other relevant point.
Any two points of differences to be explained.
Sectors of Economic Activities; Comparing the Three Sectors
MCQ
1. Which one of the following pair is correctly matched? (2023)
(a) Primary Sector - Fisherman
(b) Secondary Sector - Priest
(c) Tertiary Sector - Basket Weaver
(d) Quarternary Sector – Gardener
2. Which one of the following pairs is correctly matched? (2023)
(a) Primary Sector - Flower Cultivator
(b) Secondary Sector - Milk Vendor
(c) Tertiary Sector - Fisherman
(d) Manufacturing Sector – Gardener
3. Activities that help in the development of Primary and Secondary sectors
come under which one of the following sectors? (Term-1, 2021-22)
(a) Primary
(b) Secondary
(c) Tertiary
(d) Quaternary
4. At the initial stages of development, which one of the following sectors was
the most important of economic activity? (Term-1, 2021-22)
(a) Primary
(b) Secondary
(c) Tertiary
(d) Quaternary
5. Activities in which natural products are changed into other forms come
under which one of the following sectors? (Term-1, 2021-22)
(a) Primary
(b) Secondary
(c) Tertiary
(d) Quaternary
6. The products received by exploiting natural resources come under which
one of the following sectors? (Term-1, 2021-22)
(a) Quaternary
(b) Tertiary
(c) Secondary
(d) Primary
7. Which one of the following activities comes under 'Primary sector'?
(2021 C)
(a) Mining
(b) Transport
(c) Education
(d) Storage
VSA (1 mark)
8. Distinguish between 'primary' and 'secondary' sectors. (Delhi 2019)
9. Why tertiary sector is also called the service sector? (2017,2014)
10. In which sector are natural products changed into form through ways of
manufacturing? (2015)
11. A.T.M. is an example of which sector? (2015)
12. Which sector helps in the development of the primary and secondary
sector? (2014)
13. In which sector is manufacturing included? (2014)
14. What do final goods and services mean? (2014)
SAI (3 marks)
15. "Tertiary sector activities help in the development of the primary and
secondary sectors". Evaluate the statement. (2020)
16. "Primary sector was the most important sector of economic activity at
initial stages of development." Evaluate the statement. (2020)
17. What historical changes have been brought about in the primary economy?
(2017)
18. How are the three sectors of the economy different from each other?
Explain. (2017)
19. Explain the meaning of tertiary sector. Mention any four economic
activities of this sector. (2014)
20. Classify the economic sectors on the basis of nature of activities. Mention
the main feature of each. (2014)
LA (5 marks)
21. Suggest any three measures through which underemployment in
agriculture sector can be minimised. (2020)
22. "When a country develops, the contribution of primary sector declines and
that of secondary and tertiary sector increases." Analyse the statement.
(2015,2014)
Primary, Secondary and Tertiary Sectors in India; Division of Sectors as
Organised and Unorganised
MCQ
23. Kanta works in an office. She gets her salary regularly at the end of every
month. In addition to the salary, she also gets other benefits laid down by the
government. In which of the following sector Kanta is working? (2023)
(a) Organised Sector
(b) Unorganised Sector
(c) Primary Sector
(d) Quarternary Sector
24. Which of the following organisation is providing data regarding
employment in India? (2023)
(a) National Statistical Office
(b) Niti Aayog
(c) National Informatics Centre
(d) Public Service Commission
25. Which one of the following sectors contribute highest in the GDP of India?
(2023)
(a) Primary
(b) Secondary
(c) Tertiary
(d) Quaternary
VSA (1 mark)
26. "Harita attends her office from 9:30 am to 5:30 pm. She gets her salary
regularly at the end of every month. In addition to the salary, she also gets
Provident Fund and other facilities as per the rules laid down by the
Government." Identify the employment sector in which Harita is working.
(2020 C) (2020)
27. Suggest any one measure for the development of any activity of 'Secondary
Sector! (2017)
28. Mention any one feature of organised sector. (2017)
29. What do you understand by under employment?
30. When was Mahatma Gandhi National Rural Employment Guarantee Act
implemented? (2016)
31. What is disguised unemployment? (2016)
32. State the meaning of under-employment. (2016)
33. In which sector is Seasonal and Disguised Unemployment most prevalent
in India? (2016)
34. What is another name of underemployment? (2016)
35. Suggest any one way to solve under-employment situation in rural areas in
India. (2016)
36. Mention any one factor responsible for the growth of service sector in the
Indian economy. (2016)
37. Which sector has gained prominence over the last thirty years? (2016)
38. What does comprise the unorganised sector in rural areas? (2015)
39. Which communities generally find themselves in the unorganised
sector?(2015)
SAI (3 marks)
40. Compare the employment conditions prevailing in the organised and
unorganised sector. (2023)
41. Explain how 'Tertiary Sector' is different from other sectors. (2023)
42. How do the workers of organised sector receive the benefits of
employment security? Explain with examples. (2021 C)
OR
Why do people prefer to work in an organised sector? Explain. (2015)
43. Why is the 'tertiary sector' becoming important in India? Explain any three
reasons. (2020, Delhi 2019)
44. "All the services of the "service sector" are not growing equally well."
Evaluate the statement. (2020)
45. Suggest any three ways to save workers of unorganised sector from
exploitation. (2020)
46. What constitutes the unorganised sector in urban areas? Why do workers
in this sector need protection? (2015)
47. Explain any three reasons for the primary sector to be the largest
employer in India. (2015)
48. "The declining share of agriculture in the Gross Domestic Product (G.D.P.)
is a matter of serious concern in India". Support the statement with any five
reasons. (2015)
49. Explain the term 'unemployment'. What is disguised unemployment?
(2014)
50. Why is NREGA also called the right to work? Explain. (2014)

LA (5 marks)
51. Read the source given below and attempt any 5 questions.
Take the case of Laxmi with her two-hectare plot of unirrigated land. The
government can spend some money or banks can provide a loan, to construct
a well for her family to irrigate the land. Laxmi will then be able to irrigate her
land and take a second crop. wheat, during the rabi season. Let us suppose
that one hectare of wheat can provide employment to two people for 50 days
(including sowing, watering, fertiliser application and harvesting). So two
more members of the family can be employed in her own field. Now suppose a
new dam is constructed and canals are dug to irrigate many such farms. This
could lead to a lot of employment generation within the agriculture sector
itself reducing the problem of underemployment.
(i) Which one of the following economic sectors is Laxmi related to?
(a) Primary
(b) Secondary.
(c) Tertiary
(d) Quaternary
(ii) Which one of the following categories of farmers is Laxmi related to?
(a) Big
(c) Marginal
(b) Medium
(d) Agricultural labourer
(iii) In which one of the following sectors is underemployment seen at the
maximum?
(a) Industry
(b) Agriculture
(c) Trade
(d) Commerce
(iv) How does construction of dams and canals create employment in large
numbers in rural areas?
(a) Large number of engineers are needed
(b) Large number of technicians are also required
(c) Adjustment of large number of unskilled labourers
(d) Executives and administrators can easily be adjusted
(v) Which one of the following is the main result of increasing irrigation
facilities in the field of agriculture?
(a) Increase in production
(b) Increase in productivity
(c) Change in cropping pattern
(d) Promote high yielding of crops
(vi) Which one of the following means of irrigation generally comes under the
Public Sector? (Term-1, 2021-22)
(a) Well
(b) Tubewell
(c) Tank
(d) Canal
52. Compare the employment conditions of workers in the organised and
unorganised sectors. (2017, 2016)
OR
Differentiate between organised and unorganised sector. (2015)
53. Describe any five provisions of 'National Rural Employment Guarantee' Act
2005. (2017)
54. Suggest any five measures to reduce the unemployment. (2016)
55. There has been a big change in the three sectors of economic activities, but
a similar shift has not taken place in the share of employment. Explain the
above statement on the basis of facts. (2015)
56. Suggest some ways which can be helpful in creating employment in rural
areas. (2015) Ap
57. Why is agriculture the most labour absorbing sector in India? How does
disguised unemployment make it worse? Explain with an example. (2014)

Sectors in Terms of Ownership: Public and Private Sectors

MCQ
58. In the question given below, there are two statements marked as
Assertion(A) and Reason (R). Read the statements and choose the correct
option:
Assertion (A): The Government of India buys wheat and rice from farmers at
fair price.
Reason (R): Public sector contributes to the economic development. (2020)
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
VSA (1 mark)
59. How is Public sector different from Private sector? (2020)
60. How does public sector help in the development of a country? (2020 C,
2015)
61. TISCO and Reliance are owned by which sector? (2016)
62. What is the intention of the government in raising money through taxes?
(2015)
63. Who has the ownership of the assets in the public sector? (2015)
SAI (3 marks)
64. Suggest any three ways to improve the condition of the public sector at
grass root level. (2020) An
65. Distinguish between the public sector and the private sector. (2015)
OR
Classify the sector of economy on the basis of ownership. (2014)
LA (5 marks)
66. Highlight any five features of 'Public Sector: (Al 2019)
67. Explain why service sector is gaining more importance in the global
economy. (2019, 2017)
68. How does public sector contribute to the economic development of a
nation? Explain. (2019, 2014)
69. Describe the estimates of Planning Commission to create jobs in tourism
and education. (2016)

CBSE Sample Questions

Sectors of Economic Activities; Comparing the Three Sectors (2022-23)

MCQ
1. Find the odd one out from the following options:
(a) Tourist Guide, Barber, Tailor and Potter
(b) Teacher, Doctor, Vegetable Vendor and Lawyer
(c) Postman, Cobbler, Soldier and Police Constable
(d) Indian Railways, Jet Airways, Doordarshan and Metro
2. Which one of the following is an example of Primary Sector activity? (Term-
1, 2021-22)
(a) Baking
(b) Outsourcing
(c) Farming
(d) Banking
LA (5 marks)
3. Tertiary sector is playing a significant role in the development of Indian
Economy'. Justify the statement. (2020-21)
Primary, Secondary and Tertiary Sectors in India; Division of Sectors
as Organised and Unorganised
MCQ
4. Fill in the blank: (2022-23)

(a) Nature of Employment activities

(b) Nature of Social activities
(c) Nature of Production activities
(d) Nature of Political activities

5. According to 2017-2018 data, the share of different sectors in employment

(percentage) in India was
Primary Sector-44%
Secondary Sector-25%
Tertiary Sector-31%
Out of the three sectors, why is the ratio of employment in Primary Sector
high? Select the most suitable option from the following: (Term-1, 2021-22)
(a) Workers in the Primary Sector are underemployed
(b) Low job opportunities in Secondary Sector
(c) Efforts of labour are not equivalent in all the sectors
(d) Outsourcing of job opportunities in Secondary Sector
6. Which of the following examples falls under an organised sector? (Term-1,
2021-22)
(a) A daily wage labourer working for a contractor
(b) An engineer getting all employment benefits
(c) A cleaning staff in a private school
(d) A tailor stitching clothes at his home
7. A woman works at a sweet shop in her village on a contract basis and gets
meagre salary after working the entire day. She doesn't get any holidays or
paid leave, rather her employer deducts her salary whenever she is absent
from work. Find out in which of the following sectors she is working. (Term-1,
2021-22)
(a) Primary Sector
(c) Organised Sector
(b) Service Sector
(d) Unorganised Sector
8. Mahatma Gandhi National Rural Employment Guarantee Act 2005 states a
guarantee of minimum 100 days of employment per year. If government is
unable to fulfil these 100 days of employment, the government would have to
(Term-1, 2021-22)
(a) Pay the compensation in lieu of these days
(b) Provide another scheme for the same
(c) Pay at least 1/3 percent allowance
(d) Provide health care as compensation
VSA (2 marks)
9. In what ways, Government can increase employment in the rural sector?
(2022-23)
SAI (3 marks)
10. 'Tertiary sector is different from other sectors! Justify the statement with
suitable arguments. (2022-23)
Sectors in Terms of Ownership: Public and Private Sectors
LA (5 marks)
11. 'Public sector contributes to the economic development of India.' Justify
the statement. (2020-21)

ANSWERS
Previous Years' CBSE Board Questions
1. (a): Primary sector - Fishermen.
2. (a): Primary sector - Flower cultivator.
3. (c): Tertiary sector generates services rather than goods. They promote
primary and secondary sectors by providing expertise, finance, transportation,
advertisement, etc.
4. (a): It has been noted from the history of many newly developed countries
that at initial stages of development, primary sector was the most important
sector of economic activity.
5. (b): Manufacturing industries are secondary
activities. They change natural products into other forms.
6. (d): Primary sector
7. (a): Mining
8. When the economic activity depends mainly on exploitation of natural
resource, then that activity comes under the primary sector. Agriculture and
its related activities are the primary sectors of the economy, so farming is an
example of primary sector activity. While the activities in which natural
products are changed into other forms comes under secondary sector.
9. Tertiary sector is the sector which provides services, such as banking,
selling, transportation, etc. These services actually help in proper functioning
of the primary and secondary sectors.
10. Secondary sector
11. Service sector
12. Service sector
13. Secondary sector
14. It represents the total production/output of the sectors.
15. Transport, storage, communication, banking and trade are some examples
of tertiary sector. Since, these activities generate services rather than goods,
they promote primary and secondary sector by:
(i) Providing expertise and finance
(ii) They are helpful for advertisement and marketing.
(iii) Provide transportation and communication facilities.
16. Primary sector was the important sector of economic activity at the initial
stages of development.
(i) It is concerned with the extraction of raw materials i.e., mining, fishing,
farming, etc.
(ii) It gives employment to the large population.
(iii) It enables the workers to leave the agricultural sector and move to other
secondary and tertiary sectors.
17. As new methods of manufacturing were developed manufacturing became
important. Its first effects were felt in Europe and consequently in British
India. Craftsmen and artisans found it difficult to sell their wares and were
forced to return to agriculture leading to severe over- employment. The
situation began to improve after India became independent. In 1972 the
primary sector was the largest, contributing 45% of the GDP. In 2003 it came
down to 25%. This was principally because the secondary and tertiary sectors
were growing very fast. In 2017 the primary sector contributed just 17% to
the GDP however, it still employs 53% of the Indian workforce. During this
period the agricultural sector has seen major changes, such as: Two green
revolutions leading more productivity by use of better seeds, fertilizers, etc.
Vast improvements in animal husbandry, fisheries, etc. Growth in food
processing and allied field.
18. (i) Primary Sector: Activities undertaken by using natural resources, e.g.
forestry, agriculture, fishing, etc.
(ii) Secondary Sector Activities include various manufacturing activities and
adds utility to primary sector, e.g. cotton to cloth, Iron ore to Steel, etc.
(iii) Tertiary Sector: Includes all such activities which support primary and
secondary sector by providing services, such as transportation etc.
19. Tertiary sector: These are activities that help in the development of the
primary and secondary sectors. These activities, by themselves, do not
produce a good but they are a support for the production process. Four
economic activities of this sector are banking, transport, storage,
communication etc.
20. Classification of economic sector on the basis of nature of activities are as
follows:
(i) Primary sector: When we produce goods by exploiting natural resources, it
is an activity of the primary sector, such as agriculture, dairy farming, fishing,
forestry.
(ii) Secondary sector: In this, natural products are converted into other forms
through manufacturing that we associate with industrial activity. The product
is not produced by nature but has to be made and therefore, some process of
manufacturing is essential. For example, using cotton fibre that we get from
plant is spun and cloth is made.
(iii) Tertiary sector: It helps in the development of the primary and secondary
sectors. They provide aid or a support for the production process. Transport,
storage, communication, banking, trade are some examples of tertiary
activities.
21. Underemployment is a situation where there is under-utilisation of labour,
either they are not in job where they can use their skill or they do not get full
time job. these methods may help to solve the problem of underemployment-
(i) One or two members of farmers family can work in the farms of big
landlord and earn wages.
(ii) More irrigated facilities can be provided to grow two or three crops in a
year.
(iii) By opening processing units of agriculture production, more employment
opportunities can be created.
22. (i) In the initial stages of development, the primary sector was the most
important sector of economic activity. As the methods of farming changed and
agriculture sector began to prosper, people began to take up other activities.
(ii) New methods of manufacturing were introduced; factories came up and
started expanding.
(iii) The secondary sector gradually became the most important in total
production and employment.
(iv) With the development of areas like transport and administration, the
service sector kept on growing. In the past 100 years, there has been a shift
from the secondary to the tertiary sector in developing economies.
(v) The service sector has become the most important in terms of total
production and employment. This is the general pattern observed in
developed countries.
23. (a): Organised Sector
24. (a): National Statistical Office
25. (c): Tertiary
26. Organised sector
27. Development of secondary sector can be happen through:
(i) Adoption of new and advance technology.
(ii) Incentives to be provided by the government of promote secondary sector.
28. A worker is assured of regular work and regular salary and also other
benefits.
29. It is the condition in which people in a labour force are employed at less
than full-time or regular jobs or at
jobs inadequate with respect to their training or economic needs.
30. In the year 2005.
31. Disguised unemployment: A situation where labour that is employed in a
job is not actually utilised for the production of goods and services.
32. Underemployment happens when the workers are working at less than
their capabilities. The underemployment of workers is not reflected in official
unemployment statistics because of the way they are compiled.
33. It is mainly in the agriculture sector (Primary sector).
34. Overstaffing or hidden unemployment
35. The government can spend money on development of infrastructure
projects, such as construction of roads, canals, etc. The government can
provide easy credit to people and encourage entrepreneurship.
36. As income level rose, certain section of the population started demanding
many services like eating out, tourism, private hospital, etc. The rise of
information and communication technology can be largely attributed to
improvement in telecommunication and power sector.
37. Tertiary sector
38. Agricultural activities
39. Scheduled tribes, scheduled castes and backward communities
40. Employment conditions under :
(a) Organised sector
(i) Rules and regulations (labour laws) as proposed by the government are
followed.
(ii) Formal processes and procedures are followed.
(iii) Security of employment to workers, who are employed for full time is
ensured.
(iv) Working hours fixed, overtime is paid for extra hours of work.
(v) Workers get benefits like provident fund, gratuity, medical benefits, paid
leave, etc.
(b) Unorganised sector
(i) Outside the control of the government laws.
(ii) Small and scattered units.
(iii) Rules and regulations are not followed
(iv) Low-paid and irregular jobs
(v) High degree of insecurity.
(vi) No provision for overtime, paid leave, holidays, etc.
41. Tertiary sector is different from other sectors because:
(i) The activities of the tertiary sector help in the development of secondary
and primary sectors.
(ii) Tertiary sector activities do not produce goods by themselves, but they
support or aid the process of production in other sectors.
(ii) To help in the trade or production, credit would be required, hence the
need to borrow from banks would arise, and communication through phones
or letters are also a necessity to complete the processes involved in
production and trade.
(iv) After production, the need to store the produce in go downs or cold
storage facilities will also arise.
42. People enjoy working in the organised sector as there is a proper and
systematic way to get the work done from the employees. Benefits of
organised sector:
(i) People enjoy security of employment.
(ii) Work for fixed hours.
(iii) If they work more, they get overtime allowances.
(iv) They have registered by the government and have to follow its rules and
regulations which are given in various laws such as Factories Act, Shop Act etc.
Examples are Reliance Industries Limited, Tata Motors etc.
43. Tertiary sector in India has been growing rapidly for a number of reasons.
In the year 2013-14, the tertiary sector has emerged as the largest sector in
India replacing the primary sector. The reason for the growth of the tertiary
sector are as follows-
(a) Basic services such as hospitals, educational institutions, post and
telegraph services, police stations, courts, village administrative offices,
municipal corporations, defence, transport, banks, insurance companies,
requires a large number of people to be engaged in these tertiary sector
activities.
(b) The growth of agriculture and industry leads to the development of
services such as transport, trade and storage. The demand for these services
increases when the primary and secondary sectors are well developed.
(c) As the income rise certain sections of people start demanding many more
services like eating out, tourism, shopping, private hospitals, private schools,
professional training etc. We can see these changes in the big cities.
44. (i) Service sector in India employs many different kinds of people. At one
end there are a limited number of services that employ highly skilled and
educated workers, such as managers, lawyers, accountants, etc.
(ii) At the other end, there are a very large number of workers engaged in
services, such as small shopkeepers, repair persons, transport persons. These
people barely manage to earn a living and yet perform these services.
(iii) There is no alternative opportunity for them. Only a part of this sector is
growing in importance. 45. Workers can be saved from unorganised sector
possible in the following way:
(i) Social security to workers.
(ii) Support from Labour Ministry
(iii) Provide support for the conversion of unorganised sector to organised
sector.
46. In the urban areas, unorganised sector comprises workers in small scale
industry, casual workers in construction, trade and transport, etc. It also
includes street vendors, head load workers, garment makers, rag pickers, etc.
Workers in this sector need protection from over exploitation, different
treatment because of belonging to SC and ST category.
47. Primary sector continues to be the largest employer because:
(i) Enough jobs have not been created by the secondary and tertiary sectors.
(ii) In the tertiary sector though the production has risen almost eleven times,
the employment has grown only 3 times.
(iii) When people do not get employment they flock to the primary sector.
48. (i) Indian farmers are facing challenges from international competition.
(ii) Government is reducing investment in agricultural sector, especially
irrigation sector.
(iii) Subsidy in fertilizers has decreased, leading to a rise in cost of production.
(iv) Reduction in import duties on agricultural products.
(v) Farmers are withdrawing their investment from agriculture causing a
downfall in the employment in agriculture.
49. (i) Unemployment: When a person is willing to work at the prevailing
wage rate but fails to get a job, it is called unemployment.
(ii) Disguised unemployment: When more people are workingthanrequired, it
is called disguised unemployment. Even if we remove a few people from the
job, the process of production will not be affected.
50. NREGA is also called Right to Work:
(i) It has been implemented in 200 poorest of the poor districts of India.
(ii) NREGA guarantees 100 days of assured work to the people who are able
and in need of work.
(iii) If the government fails to provide work, it will provide unemployment
allowances to the people.
(iv) One-third of the jobs are reserved for women.
51. (i) (a) Laxmi works on agricultural land. It is a primary sector.
(ii) (b): A farmer cultivating 2 to 4 hectare is a medium farmer.
(iii) (b): More people are engaged in agriculture than
needed. It is underemployment.
(iv) (c) L: labourers. Adjustment of large number of unskilled
(v) (c): Increasing irrigation has changed the cropping pattern of many
regions with farmers shifting to water intensive and commercial crops.
(vi) (d): Canals are constructed and maintained by the government. It comes
under Public Sector.
52. Employment conditions under:
(a) Organised sector
(i) Rules and regulations (labour laws) as proposed by the government are
followed.
(ii) Formal processes and procedures are followed.
(iii) Security of employment to workers, who are employed for full time is
ensured.
(iv) Working hours fixed, overtime is paid for extra hours of work.
(v) Workers get benefits like provident fund, gratuity, medical benefits, paid
leave, etc.
(b) Unorganised sector
(i) Outside the control of the government laws.
(ii) Small and scattered units.
(iii) Rules and regulations are not followed
(iv) Low-paid and irregular jobs
(v) High degree of insecurity.
(vi) No provision for overtime, paid leave, holidays, etc.
53. Provisions of National Rural Employment Guarantee Act (NREGA), 2005
are:
(i) It provides 100 days assured employment every year to each rural
household.
(ii) One-third of the proposed jobs are reserved for women.
(iii) If an applicant is not employed within 15 days he/she is entitled to a daily
unemployment allowance.
(iv) The government have to establish Central Employment Guarantee Funds
and state employment guarantee funds for the implementation of the scheme.
(v) The scheme is to be extended to 600 districts.
54. To reduce unemployment there has to be a multi- prolonged action.
(i) Planned development by accelerating industrialisation is the need of the
hour. At the same time, work has to be done to stimulate demand of goods and
services. This will create sustainable jobs in industrial sector.
(ii) More employment opportunities in the rural areas needs to be created by
processing farm produce and farm waste. Cooperative farming should be
introduced for the benefit of small farmers. Villagers should be encouraged to
develop allied activities, such as fisheries, aperies, etc., and cottage industries.
(iii) To eliminate seasonal unemployment, projects should be planned
accordingly. Allied economic activity should be arranged by providing micro-
finance and community self- help in both rural and urban areas.
(iv) Educational programs related to adaptive technology must be
demonstrated in simple and implementable form. This will encourage
entrepreneurial spirit amongst the people.
(v) Self-employment schemes in services or small manufacturing, connected
to the core activity in the rural/urban areas for the unemployed youth have to
be launched to enable them to start their own business or small-scale firm,
which can also generate employment for many others.
55. (i) Industrial output has increased by eight times but employment in the
sector has increased only by 2-5 times.
(ii) In the tertiary sector, the production of services rose by eleven times but
employment in the services rose only by three times.
(iii) More than half of the workers in the country are working in the primary
sector producing only one quarter of the goods.
(iv) Secondary and tertiary sectors produce three fourths of the produce
whereas, they employ only one quarter of the people.
(v) Primary sector has disguised employment whereas workers in secondary
and tertiary sectors work overtime.
56. Some ways to increase employment in rural areas are:
(i) Construction of new dams and canals- Constructing dams, canals or digging
wells in villages. This would serve the needs of farmers for irrigation and
people engaged in such construction activity would gain employment.
(ii) Development in transport facility by government and creating storage
facilities of farm produce in rural areas.
(iii) Credit from local banks, so that crops can be grown every year.
(iv) Agro-based industries can be set up in rural areas or semi-rural belts.
(v) Making provisions for education and health services in rural belts can also
result in employment.
57. (i) Agriculture is the most labour absorbing sector in India because the
secondary and tertiary sectors have failed to provide more employment.
(ii) Disguised unemployment is generally found in agriculture sector. People
engaged in farming are generally more than required. Though it seems that
they are working in the cultivation of land, but actually they are partly
employed.
(iii) For example: A farmer who has a land of three hectare, which requires
only two persons for farming related to work, but all the seven family
members are engaged in it. If five persons out of them are withdrawn from the
job, the total production will not fall. Therefore, five persons will come under
the category of disguised unemployment.
58. (b): Both A and R are true, but R is not the correct explanation of A.
59. Public sector is controlled by Government whereas private sector is under
the control of individual or a firm.
60. Public sector invests in key sectors, such as health, education, defence
61. Private sector
62. Government raises money through taxes to meet the expenses of the
various services rendered by it.
63. The Government
64. Reforms to improve public sector:
(i) More investment by Government at grass root level.
(ii) More banks and cooperatives.
(iii) Infrastructural development at grass root level.
(iv) Health and education profits at grass root level.
65. On the basis of ownership sectors can be classified as public sector and
private sector Public sector
(i) The government controls the assets and provides the services.
(ii) The purpose of the public sector is not just to earn profits. Government
raises money through taxes to invest on the services rendered by it.
(iii) Railways or post office is an example of the public sector. Private Sector:
(i) Ownership of assets and delivery of services is in the hands of private
individuals or companies.
(ii) Activities in the private sector are guided by the motive to earn profit. To
provide such services the companies invest their own money or raise it from
the public.
(iii) Tata Iron and Steel Company (TISCO) or Reliance Industries Ltd. (RIL) are
examples of private sector.
66. The features of the public sector can be enumerated
as follows:
(i) Some projects need spending of large sums of money, which is beyond the
capacity of the private sector. Collecting money from thousands of people who
use these facilities is not easy. This is seen in various public conveniences.
(ii) In certain cases of national security such as the defense forces, only the
public sector can be trusted. Large scale operations of governing the banks
and management of money circulation can only be done by the public sector.
(ii) Even if they do provide these things the private sector is more likely to
charge a high rate for their use. Examples are construction of roads, bridges,
railways, harbors, metro rail, providing irrigation through dams etc.
(iv) Only the governments can undertake such heavy spending and ensure
that these facilities are available for everyone. There are some activities, which
the government has to support.
(v) In some cases, the government subsidizes the goods that are meant for the
poor. This includes cooking gas, fertilisers, irrigation, electricity in rural sector
support purchase price of farm produce, primary education and medical care
etc.
67. Tertiary sector in India has been growing rapidly for a number of reasons:
(i) In a developing country, the government has to take the responsibility for
the provision of basic services for example, hospitals, educational institutions,
post and telegraph services, police stations, courts, village administrative
offices, municipal corporations, defence, transport, banks, insurance
companies, etc.
(ii) The development of agriculture and industry leads to the development of
services, such as trade, transport, storage, etc. Greater the development of the
primary and secondary sectors, more would be the demand for such services.
(iii) As income levels rise, certain sections of people start demanding many
more services, such as eating out, tourism, shopping, private hospitals; private
schools, professional at training, etc. This change was quite sharp in cities,
especially in big cities.
(iv) Over the past decade or so, certain new services, such as those based on
information and communication technology have become important and
essential.
(v) Government policy of privatisation has also led to growth of this sector.
(vi) A large number of workers are engaged in services, such as small
shopkeepers, repair persons, transport persons, etc.
(vii) However, the entire sector has not grown. Large numbers of people
engaged as construction workers, maids, peons, small shopkeepers, etc. do not
find any change in their life.
68. Public sector undertakes various activities which are important for the
development of the public in general and also which require huge amount of
investment.
(i) It promotes rapid economic development through creation and expansion
of infrastructure in underdeveloped areas.
(ii) It creates employment opportunities through its various projects.
(iii) It generates financial resources for economic and social development.
(iv) It ensures a balanced regional development.
(v) It encourages development of small, medium and cottage industries as
ancillaries.
(vi) It ensures easy availability of goods at moderate rates.
(vii) It contributes to community development by providing health and
educational services.
69. Regarding jobs in schools:
(i) Planning Commission estimates that nearly 20 lakh jobs can be created in
education sector alone.
(ii) For more children to attend school, more teachers and more infrastructure
will be required. Regarding jobs in Tourism:
(i) Planning Commission estimates that nearly 35 lakh jobs can be created in
tourism sector.
(ii) Regional Crafts and Cottage industry can also create jobs.
(iii) New services, such as IT also are job generators.

CBSE Sample Questions

1. (d): Indian Railways, Jet Airways, Doordarshan and Metro.
2. (c): When the economic activity depends mainly on exploitation of natural
resource, then that activity comes under the primary sector. Agriculture and
its related activities are the primary sectors of the economy, so farming is an
example of primary sector activity. (0.80)
3. (i) Basic services: Services such as hospitals, educational institutions, post
and telegraph services, transport, banks, insurance companies, are in this
group. (5 x 1)
(ii) Development of primary and secondary sector: The development of
agriculture and industry leads to the development of services such as
transport, trade and storage.
(iii) Rise in income levels: As income levels rise, certain sections of people
start demanding many more services like eating out, tourism, shopping,
private hospitals, private schools and professional training centres.
(iv) Rise in information technology: Over the past decade or so, certain new
services, such as those based on information and communication technology
have become important and essential.
(v) Globalisation: Due to globalisation, people have become aware of new
services and activities, and communication because of which the tertiary
sector has gained importance.
4. (a): Nature of Employment activities (1)
5. (a): There are more people in primary sector than is necessary. So, even if
we move a few people out, production will not be affected. Workers in primary
sector are generally underemployed. (0.80)
6. (b): Organised sectors are those enterprises which have regular terms of
employment and assured work. They are registered by the government and
have to follow rules and regulations, So in the given options an engineer
getting all employment benefits fall under the organised sector. (0.80)
7. (d): Woman is working in an unorganised sector. The unorganised is
characterised by small and scattered units which are largely outside the
control of the government. (0.80)
8. (a): If government is unable to fulfil these 100 days of an employment, they
would have to pay the compensation in lieu of these days. (0.80)
9. Ways to increase employment in rural areas are:
(i) Construction of new dams and canals- Constructing dams, canals or digging
wells in villages. This would serve the needs of farmers for irrigation and
people engaged in such construction activity would gain employment.
(ii) Development in transport facility by government and creating storage
facilities of farm produce in rural areas.
(iii) Credit from local banks, so that crops can be grown every year.
(iv) Agro-based industries can be set up in rural areas or semi-rural belts.
(v) Making provisions for education and health services in rural belts can also
result in employment.
(Any two points to be explained) (2×1)
10. Tertiary sector is different from other two sectors because,
(i) It does not provide or produce goods.
(ii) It provides services, such as transport, I.T. communications, etc.
(iii) It is the backbone of all the sector.
(iv) As primary and secondary sectors develop, the requirement of services
increases.

(Any three) (3x1)

11. (i) It promotes rapid economic development through creation and
expansion of infrastructure.
(ii) It creates employment opportunities.
(iii) It generates financial resources for development.
(iv) It is ensuring equality of income, wealth and thus, a
balanced regional development.
(v) It encourages development of small, medium and cottage industries.
(vi) It ensures easy availability of goods at moderate rates.
(vii) Contributes to community development, Human Development Index i.e.,
health and educational services.
(Any five to be pointed.) (5 x 1)