NCERT Economics Class 10 Chapter 2 Sectors of the Indian Economy CBSE Board Sample Problems Short Answer (For CBSE, ICSE, IAS, NET, NRA 2022)

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Question

Why has the entire tertiary sector not grown in importance?

Explain

Solution

The entire tertiary sector has not grown in importance because of the following reasons:

  • Peculiarity of skills in the tertiary sector: Highly-educated and skilled professionals only are able to get employment.
  • Other engage themselves in low- paid jobs.
  • High incomes: Higher incomes are available for the top level administrative jobs only. Low- paid jobs do not attract employment.
  • No job security: Large number of workers are casual with irregular and low incomes barely to sustain livelihoods.

Question

Distinguish between final goods and intermediate goods.

Solution

Final Goods

  • The goods which are used for final consumption.
  • Value of final goods is included in the national income.
    • For e. g. : Television, bread, bakery products etc. intermediate Goods
  • The goods which are used up in producing final goods and services.
  • The value of intermediate goods is not included in the national income.
    • For e. g. : Flour, cotton etc.

Question

Enumerate the various causes of rural unemployment in India?

Solution

  • Lack of skill and education.
  • Chances of disguised unemployment are very high in agriculture.
  • There is lack of industrialization in rural areas.

Question

Do you agree that classification of economic activities into primary, secondary and tertiary is useful? Justify your answer giving three valid arguments.

Solution

Yes, I agree with the statement as:

  • We can find out how many workers are working in different sectors.
  • We can find out the share of each sector in the gross domestic product.
  • We can find out which sector is growing and which is lagging behind.

Question

What are the objectives of NREGA 2005?

Solution

  • National Rural Employment Guarantee Act 2005 (NREGA) is an Indian labour law and social security measure that aims to guarantee the right to work.
  • It aims at enhancing livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
  • The NREGA was initiated with the objective of “enhancing livelihood security in rural areas by providing at least loo days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work.”
  • Another aim of NREGA is to provide employment within 5 km of an applicant՚s residence, and minimum wages are to be paid. If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.

Question

What is underemployment? Explain with an example.

Solution

  • It is a situation under which people are seen working but all of them work less than their potential.
  • Also known as disguised unemployment.
  • For e. g. : To cultivate a field, only two workers are required but the whole family of five people is working

Question

“Consequences of environmental degradation do not respect national or state boundaries.” Explain

Solution

  • Environmental degradation is a global issue, which has been discussed and debated over the past decades. It is the deterioration of the environment through depletion of resources such as air, water and soil. It affects and depletes the ecosystem, hampers the ozone layer and is responsible for extinction of wildlife. Environmental degradation is not restricted to national or state boundaries. It hampers the surroundings irrespective of any national or state boundaries and its harmful effects are well felt in the surrounding states and neighbouring countries and even globally.
  • For example, if India has a lot of air pollution through massive thermal power plants and other sources, it affects its neighbouring countries like Pakistan, Sri Lanka and
  • Bangladesh. Acid rain and climate change are some transcontinental issues. Land degradation in India affects Bangladesh as it brings massive silt and floods.
  • Therefore, environmental degradation is a serious issue which has grabbed the attention of all countries irrespective of boundaries because protecting the environment is the need of the hour at the global level.

Question

Explain the working condition of workers in unorganized sector.

Solution

  • The following points show the working condition of workers in unorganized sector.
  • The unorganized sector is characterized by small and scattered units, which are largely outside the control of the government.
  • There are rules and regulations but these are not followed.
  • Jobs here are low-paid and often not regular.
  • The condition of workers in unorganized sector is not good or stable.
  • There is no provision for overtime, paid leave, holidays, leave due to sickness, etc.
  • 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.
  • A lot also depend on the whims of the employer.
  • This sector includes a large number of people who are employed on their own, doing small jobs such as selling things on the street or doing repair work.

Question

With the example of sugar cane, explain the interdependence of all the three sectors of economy.

Solution

  • Primary Sector: cultivation of sugar cane
  • Secondary Sector: processing of sugar cane to make sugar Tertiary sector
  • Tertiary Sector: Transportation of sugar cane into factories for processing it into sugar
  • Transportation of sugar packs to various markets
  • Sale of sugar by wholesalers and retailers.
  • So, the process starts when the sugar is cultivated. Since cultivation is part of agriculture, it comes in the primary sector.
  • After the cultivation, the sugar cane is processed to make sugar in the factories, which is an industrial process and thus comes in the secondary sector. After which, the sugar is transported to various markets, where it is sold by retailers and wholesalers which is part of tertiary sector.
  • In this way all the three sectors are interdependent.

Question

What constitutes the unorganized sector in urban areas? Why do workers in this area need protection?

Solution

  • In the urban areas, unorganized sector comprises mainly small-scale industry, casual workers in construction, trade and transport, street vendors, head-load workers, garment makers, rag pickers, etc. All these workers constitute unorganized sector in urban areas.
  • A majority of workers in the unorganized sector are from scheduled castes scheduled tribes and backward communities.
  • Workers in unorganized sector urban areas need protection because, besides getting the irregular and low- paid work, these workers also face social discrimination. They are looked down upon by the people in urban areas. Protection and support to the unorganized sector workers is thus necessary for both economic and social development.

Question

Name the sector that is the largest employer in India. Why does this sector produce only a quarter of the National GDP?

Solution

  • The agricultural sector (Primary) is the largest employer in India. Nearly 51 % of the population is engaged in this section in one way or the other. However, its share in the national GDP is very less because of the following reasons.
  • The average size of the land holdings is very low which results in low productivity per holder.
  • Less use of modern technology and knowhow among the farmers to increase crop productivity.
  • The system of providing financing and marketing facilities have been insufficient since independence. The farmers are not able to get benefits from the loan facilities and access to large markets.
  • Absence of alternate income generating activities in rural areas give rise to disguised unemployment where efficient labour force is not used to its optimum.

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