CBSE Class 10 Economics Sectors Of Indian Economy Worksheet Set B

Objective Type Questions

Question. Which of the following sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer : C

Question. Choose the incorrect option from the following :
List I                             List II
(a) Courier          (1) Tertiary Sector
(b) Fisherman      (2) Primary Sector
(c) Carpenter       (3) Primary Sector
(d) Banker           (4) Tertiary Sector
Answer : C

Question. Which of the following is another name for primary sector?
(a) Service sector
(b) Agriculture and related sector
(c) IT Sector
(d) Industrial sector
Answer : B

Question. Identify the difference between the organised and unorganised sectors.
(a) Employees in organised sector are mainly involved in agriculture and allied activities, while the employees in unorganized sector are mainly involved in manufacturing activities that take place with the help of equipment in factories.
(b) Firms in organised sector are registered by the government and have to follow certain norms of employment as set by the government, while the unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
(c) Employees in organized sector are mainly self-employed, while the employees in unorganized sector are mainly employed in government or public sector jobs.
(d) In a country, the contribution of organized sector is minimal to the GDP, while the unorganized sector mainly supports the economic growth of a country.
Answer : B

Question. Which of the following is a benefit of a tertiary sector?
(a) The activities of tertiary sector help in the development of primary and secondary sector.
(b) The tertiary sector helps in the production of goods by directly using natural resources.
(c) The individuals involved in tertiary sector use better quality seeds and manure to produce agricultural goods.
(d) The individuals involved in tertiary sector buys raw materials directly from farmers to convert them into final goods.
Answer : A

Question. Which of the following is true about Mahatma Gandhi National Rural Employment Guarantee Act
(a) The government has to ensure to increase the number of jobs in unorganized sector.
(b) The government is required to provide 100 days of employment in rural areas to people who are able to and in need of work.
(c) The government has to ensure that all the unemployed individuals in rural areas must get  100 per day as unemployment benefits.
(d) The government is required to provide free health check ups and medical facilities to unemployed people in rural areas for at least 100 days in a year.
Answer : B

Question. Public Sector stands for :
(a) Most of the assets owned by big companies.
(b) Assets owned by Government.
(c) Most of the assets owned by a group of people.
(d) Most of the assets owned by an individual.
Answer : B

Question. Which of the following refers to the intermediary good?
(a) Goods that are included in the estimation of GDP.
(b) Goods that are not used as raw material for production of other goods during a year.
(c) Goods that are used as raw material for the production of other goods during a year.
(d) Goods that are not resold by the firms to make profit during a year.
Answer : C

Question. Which of the following best defines the gross domestic product (GDP) of a country?
(a) It is the decrease in the value of assets over a given period of time.
(b) It is the value of final goods and services produced with in the domestic territory of a country. 
(c) It is the difference between value of goods imported and the value of goods exported.
(d) It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Answer : B

Question. Arrange the following in the correct sequences –
i. Ginning ii. Cotton spinning
iii. Dyeing cotton fabric iv. Growing cotton
Options –
(a) iv-i-ii-iii
(b) i-iv-iii-ii
(c) iii-iv-i-ii
(d) iii-iv-ii-i
Answer : B

Question. Choose a method to tackle the problem of underemployment in a country.
(a) Identify, promote and locate industries and services where a large number of people can be employed.
(b) Provide debt-waiver schemes for farmers so that they can easily take loans to increase agricultural activities.
(c) The government should provide unemployment benefits to citizens.
(d) The government should focus on developing jobs in the unorganized sector as most of the people are employed in unorganized sectors.
Answer : A

Question. The goods that are derived by exploiting natural resources are referred to as the goods of _____.
(a) primary sector
(b) modern sector
(c) secondary sector
(d) tertiary sector
Answer : A

Question. Which of the following sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer : C

Question. Which of the following is true for disguised unemployment?
(a) When individuals are unemployed for more than 100 days in a year, they are disguisedly unemployed.
(b) If individuals become unemployed because a country starts using new technology and the skills of workers become obsolete, they are disguisedly unemployed.
(c) If individuals become unemployed because they are changing their jobs or moving from one place to another, they are disguisedly unemployed.
(d) When individuals are engaged in some work, however, they work less than their potential, then they are disguisedly unemployed.
Answer : D

Question.

The above image shows which sector of economic activities ?
(A) Tertiary Sector
(B) Primary Sector
(C) Joint Sector
(D) Secondary Sector
Answer : B

True or False

Question. The tertiary sector is not playing any significant role in the development of Indian economy. (True/ False)
Answer : False

Question. The purpose of the Public Sector is not just to earn profits while activities in the sector are guided by the motive to earn profits only. (True/ False)
Answer : True

Question. There has been a big change in the three sectors of economic activities in India but a similar shift has not taken place in the share of employment. (True/ False)
Answer : True

Question. The public sector plays an important role in the economy of India by creating and expanding infrastructure such as the construction of roads, bridges, railways, schools, hospitals, etc. (True/ False)
Answer : True

Question. The unorganised sector in urban areas constitutes casual workers especially in construction, trade and transport as well as the people who are employed on their own doing small jobs such as selling on the street or doing repair work. (True/ False)
Answer : True

Match the following :

Answers : 1. (D), 2. (A), 3. (C), 4. (E), 5. (B)

Assertion and Reasoning Based Questions

Mark the option which is most suitable :
(a) If both assertion and reason are true and reason is the correct explanation of assertion.
(b) If both assertion and reason are true but reason is not the correct explanation of assertion.
(c) If assertion is true but reason is false.
(d) If both assertion and reason are false.

Question. Assertion : An individual who manufacture flour from wheat is engaged in primary sector.
Reason : When some process of manufacturing is used the product is a part of secondary sector.
Answers : (d) An individual who manufactures flour from wheat is engaged in secondary sector as the products that are not manufactured directly from nature but require some manufacturing process are a part of secondary sector.

Question. Assertion : Leela works five days a week, receives her income on the last day of each month and gets medical facilities from her firm.
Reason : Leela is working in organized sector.
Answers : (a) The firms in organized sector are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc

Question. Assertion : There are several goods and services that the society needs; however, the private sector does not produce all of them.
Reason : Private sector is profit driven.
Answers : (a) Some of the services such as defense require a lot of spending and do not provide any profit. Therefore, private sector does not invest in such activities. Also, certain services such as public transportation and irrigation facilities require massive spending which is beyond the capacity of private sector.

Question. Assertion : Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.
Reason : All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.
Answers : (c) In India, not the entire service sector is growing equally well. 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. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.

Question. Assertion : Mohan is a shopkeeper who pays his taxes on time. He has employed two workers Rakesh and Raghu in his shop. He pays them well, however, none of the workers get any paid leaves in the year.
Reason : Rakesh and Raghu are employed in unorganized sector.
Answers : (a) If Rakesh and Raghu were employed in organized sector, they would receive benefits such as paid leaves, medical insurance and pension schemes from the employer. Mohan is not following labour laws as he does not provide any paid leave to his employees in the year.

Question. Assertion : In India, over the forty years between 1973- 74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
Reason : Tertiary sector is the only organized sector in the economy so the government spends a lot of money for creating jobs in tertiary sector.
Answers : (c) There are several reasons for increased production in tertiary sector such as increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.

Question. Assertion : Reliance industries is a privately-owned firm.
Reason : Government is a major stakeholder in reliance industries.
Answers : (c) Reliance industry is a privately-owned firm as the assets and delivery of goods and services in Reliance is controlled by private individuals.

Question. Assertion : The development of agriculture and industry leads to the development of service sector.
Reason : As the primary and secondary sectors develops, the demand for transport, storage structures, banks, insurance, etc., increases.
Answers : (a) As the primary and secondary sector develops the demand for the aforementioned tertiary activities increase. Not just the demand for mentioned services increases, but as individuals become better off, the demand for education, health services, professional training and communication also increase. Therefore, the development of primary and secondary sectors leads to the development of service or tertiary sector.

Question. Assertion : GDP shows how big an economy is.
Reason : GDP is the value of all goods and services produced within the domestic territory of a country in a year.
Answers : (a) GDP is the value of all final goods and services produced within a country. A higher GDP is indicative of higher production level and higher economic activity. Also, a higher GDP implies people of the country are earning more so it is indicative of the size of an economy.

Question. Assertion : In India, the primary sector is the largest employer.
Reason : The demand for services has increased enormously.
Answers : (b) The primary sector remains the largest employer in India because not enough jobs were created in the secondary and tertiary sectors. However, the demand for services has increased owing to increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.

Question. Assertion : When calculating the total value of goods and services produced in a country, the value of all goods and services at each stage of production should be calculated.
Reason : At each stage of production some value is added to a good or service, therefore, the value added at each stage of production is added to derive the total value of goods and services in an economy.
Answers : (d) When calculating the total value of goods and services produced in a country, the value of final goods and services is calculated. If we add the value of goods and services at each stage of production, we will get an inflated GDP as the same value would be included multiple times.

Source/Extract Based Questions

Read the source given below and answer the following questions.
There are many activities that are undertaken by directly using natural resources. When we produced a good by exploiting natural resources, it is an activity of the primary sector. Why primary ? This is because it forms the base for all other products that we subsequently make. Since most of the natural products we get are from agricultural, dairy, finishing, forestry, this sector is also called agriculture and related sector.The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary.
The product is not produced by nature but has to be made and therefore some process of manufacturing is essential.This could be in a factory, a workshop or at home. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector.After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. 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 an aid or a support for the productions process. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retails shops. At times, it may be necessary to store these in godowns. We also may need to talk to other over telephone or send letter (communication) or borrow money from banks (banking) to help production and trade.

Answer the following MCQs by choosing the most appropriate option:

1. The goods that are derived by exploiting natural resources are referred to as goods of _________ .
(a) primary sector
(b) modern sector
(c) secondary sector
(d) tertiary sector
Answer : (a) primary sector.

2. Which of the following is another name for primary sector?
(a) Service sector
(b) Agriculture and related sector
(c) IT sector
(d) Industrial sector
Answer : (b) Agriculture and related sector.

3. Which of the following is a benefit of a tertiary sector?
(a) The activities of tertiary sector help in the development of primary and secondary sector.
(b) The tertiary sector helps in the production of goods by directly using natural resources.
(c) The individuals involved in tertiary sector use better quality seeds and manure to produce agricultural goods.
(d) The individuals involved in tertiary sector buys raw materials directly from farmers to convert them into final goods.
Answer : (a) The activities of tertiary sector help in the development of primary and secondary sector.

4. Which of the following best defines the gross domestic product (GDP) of a country?
(a) It is the decrease in the value of assets over a given period of time.
(b) It is the value of final goods and services produced with in the domestic territory of a country.
(c) It is the difference between value of goods imported and the value of goods exported.
(d) It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Answer : (b) It is the value of final goods and services produced with in the domestic territory of a country.

Read the sources given below and answer the questions that follows –
Source A – Organised and unorganised sectors
Organised sector covers those enterprises where the terms of employment are regular and people have assured work. These are registered by the government and have to follow it rules and regulations which are given in various laws such as Factories Act, Minimum Wages Act. Workers get several benefits from the employers like paid leave, pension etc.
On the other hand, unorganised sector is characterised by small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed. There is no provision for overtime, paid leave, holidays etc.
Source B – Workers working in unorganised sector in rural areas
Workers working in unorganised sector in the rural areas are like landless agricultural labourers, Small and marginal farmer and different artisans. They can be helped in many way. They should be given adequate facilities for timely delivery of seeds agricultural inputs, credit, storage facilities and marketing outlets.
Sources C – Workers Working in unorganised sector in urban areas 
In the urban areas, unorganised sector comprise mainly of workers in small scale industries, casual workers in construction trade and’ transport etc. Small scale industry needs government’s support for processing raw material and marketing of their output

1. Workers are exploited in the unorganised sector. Do you agree with this view ? Give reason.
Answer : Yes, I do agree with the view that workers are exploited in the unorganised sector as this sector is largely outside the control of the government. Rules and regulations are not followed. Jobs are low paid and not regular.

2. How can marginal farmers be helped in unorganised sector.
Answer : Marginal farmers can be helped by giving adequate facilities for timely delivery of seeds, agricultural inputs, Credit etc.

3. Who are the people at work in the unorganised sector in the urban areas
Answer : Workers in small scale industries, casual workers in contributions, trade and transport etc are workers in urban areas in unorganised sector.

Read the source given below and answer the questions that follow:
We must realise that some of the suggestions discussed above would take a long time to implement. For the short-term, we need some quick measures. Recognising this, the central government in India made a law implementing the Right to Work in about 625 districts of India. It is called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005). Under MGNREGA 2005, all those who are able to, and are in need of, work in rural areas are guaranteed 100 days of employment in a year by the government. If the government fails in its duty to provide employment, it will give unemployment allowances to the people. The types of work that would in future help to increase the production from land will be given preference under the Act.

1. In how many districts Government in India has implemented the law for Right to Work.
(a) About 625 districts of India.
(b) About 600 districts of India.
(c) About 650 districts of India.
(d) About 675 districts of India.
Answer : A

2. Under MGNREGA 2005, how many days of employment are guaranteed by the government in rural areas.
(a) About 150 days
(b) About 100 days
(c) About 200 days
(d) About 250 days
Answer : B

3. What is the full form of MGNREGA?
(a) Mahatma Gandhi National Rural Employment Growth Act
(b) Mahatma Gandhi National Role Employment Guarantee Act
(c) Mahatma Gandhi National Rural Employment Guarantee Act
(d) None of these
Answer : C

4. What type of employment opportunities are provided under MGNREGA?
(a) Work that would in future help to increase the production from land.
(b) Work that would in future help to increase the production from industries.
(c) Work that would in future help to increase the infrastructure.
(d) None of these
Answer : A

Read the extract and answer the questions that follows:
There are many activities that are undertaken by directly using natural resources. Take, for example, the cultivation of cotton. It takes place within a crop season. For the growth of the cotton plant, we depend mainly, but not entirely, on natural factors like rainfall, sunshine and climate. The product of this activity, cotton, is a natural product. Similarly, in the case of an activity like dairy, we are dependent on the biological process of the animals and availability of fodder etc. the product here, milk also is a natural product. Similarly, minerals and ores are also natural products. When we produced a good by exploiting natural resources, it is an activity of the primary sector. Why primary ? This is because it forms the base for all other products that we subsequently make. Since most of the natural products we get are from agricultural, dairy, finishing, forestry, this sector is also called agriculture and related sector The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial
activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. This could be in a factory, a workshop or at home. For example, using cotton fibre from the plant, we spin yarn and weave cloth. Using sugarcane as a raw material, we make sugar or gur. We convert earth into bricks and use bricks to make houses and buildings. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector. After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. 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 an aid or a support for the productions process. For example, goods that
are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retails shops. At times, it may be necessary to store these in godowns. We also may need to talk to other over telephone or send letter (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communications, banking, trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

1. Which group of activities is associated directly with the natural resources ?
Answer : Primary sector is associated directly with the natural resources.

2. What is secondary sector ? Why is called as industrial sector ?
Answer : (i) Secondary sector includes the activities which manufacture finished goods from raw materials with the help of machines.
(ii) It is also called as isndustrial sector because this sector gradually became associated with the different kinds of industries that came up.

3. Give examples of tertiary sector. Why tertiary sector is also known as service sector ?
Answer : (i) Transport, communication, storage, banking, trade are some examples of tertiary sector.
(ii) The activities of tertiary sector generate service rather than goods. Therefore this sector is called as service sector.