CBSE Class 10 Social Science Sectors Of Indian Economy Important Questions Set B

Objective Type Questions

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 sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer: (c)

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 is another name for primary sector?
(a) Service sector
(b) Agriculture and related sector
(c) IT Sector
(d) Industrial sector
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 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. 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 sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer: (c)

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. Which of the following is true about Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005)?
(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. 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 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 tertiary sector is not playing any significant role in the development of Indian economy. (True/ False)
Answer: False

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 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

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. 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. Match the following :
Column A
1. Final good
2. Intermediate good
3. Organised sector
4. Unorganised sector
5. Private sector

Column B
(A) Wood
(B) Fixed working hours
(C) Profit earning
(D) Furniture
(E) No leave benefits
Answer: 1. (D), 2. (A), 3. (B), 4. (E), 5. (C)

Question. Match the following :
Column A
1. Seasonal unemployment
2. Frictional unemployment
3. Disguised unemployment
4. Structural unemployment
5. Cyclical unemployment

Column B
(A) Moving from one job to another
(B) Job opportunities during certain months of a year
(C) Actual contribution by the additional labour is nil
(D) Absence of demand for certain type of work
(E) Occurs during boom or recession
Answer: 1. (B), 2. (A), 3. (C), 4. (D), 5. (E)

Question. TISCO : Private, ________ : Public.
Answer: Railways.

Question. Complete the following : The activities of the primary sector are called primary because _______.
Answer: They form the base for all other products that we subsequently make.

Question. The main objective of a private sector enterprise is ________.
Answer: To earn a profit.

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

Question. Correct the following statement and rewrite. When more people work in a job than required it is known as seasonal employment.
Answer: When more people work in a job than required it is known as hidden disguised unemployment.

Question. Correct the following statement and rewrite. Private sector industries are those which are owned by the state or its agencies
Answer: Public sector industries are those which are owned by the state or its agencies

Question. Complete the following table.
Sector | Well managed organisation | Badly managed organisation
Public Sector | MTNL | Air India
Private Sector | Reliance Mobile | Stayam
Answer: Table completed above.

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. Identify the sector with the help of the following features :
(a) Registered by the government
(b) Workes enjoy security of employment.
(c) It is also called organised sector.
Answer: Public sector.

Very Short Answer Type Questions

Question. Which sector does utilise natural resources directly?
Answer: Primary sector.

Question. Which sector utilises machines to produce goods?
Answer: Secondary sector.

Question. Insurance and education is an example of :
Answer: Tertiary sector.

Question. What is primary sector ?
Answer: When we produce a good by exploiting natural resources, it is an activity of the primary sector.

Question. Why is secondary sector called industrial sector ?
Answer: Since this sector gets associated with various kind of industries in the course of production, that is why it is also called industrial sector.

Question. Why is tertiary sector called service sector ?
Answer: As the tertiary sector produces services unlike the primary and secondary sector which produce goods, it is also called service sector.

Question. What type of goods and services are included for calculation of GDP in India?
Answer: All the final goods and services are included for calculation of GDP in India.

Question. What is GDP ? OR What do you understand by GDP of a country ?
Answer: It is the value of all final goods and services produced within a country during a particular year.

Question. Which sectors does the tertiary sector give support to ?
Answer: Primary and secondary sector.

Question. Which sector has reduced since independence in terms of share in National Income?
Answer: Primary sector.

Question. What happens in the situation of underemployment ?
Answer: In the situation of underemployment, people seem to be apparently fully employed but actually all of them work less than their potential.

Question. Planning Commission has now been replaced by :
Answer: NITI Aayog.

Question. According to a study conducted by the Planning Commission, how many jobs can be created in the education sector alone?
Answer: 20 lakh jobs.

Question. What is the full form of MGNREGA?
Answer: Mahatma Gandhi National Rural Employment Guarantee Act.

Question. In how many districts was the law called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005) initially implemented?
Answer: About 625 districts of India.

Question. What if the underemployed people are removed from primary sector and provide them with proper work somewhere else ?
Answer: If this happens, the production in primary sector will not suffer and the incomes of the people who are employed in other work would increase.

Question. What kind of industries and services can be promoted and located in semi-rural areas where a large number of people may be employed ?
Answer: A dal mill, cold storage, honey collection centres and industries that process vegetables and agricultural produce like potato, sweet potato, wheat, rice, tomato, fruits, which can be sold in outside markets etc. can be set up in semi-rural areas to promote employment.

Question. Where do we find majority of workers from scheduled castes, tribes and backward communities?
Answer: The unorganised sector.

Question. Which sector is characterised by small and scattered units which are largely outside the control of the government.
Answer: The unorganised sector.

Question. Which laws do the organised sector enterprises need to follow ?
Answer: The organised sector enterprises need to follow various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.

Question. What is the main motive of private sector organisations?
Answer: Profit.

Question. In the public sector, who owns most of the assets and provides all the services?
Answer: The government.

Question. Give example of private sector organisations.
Answer: Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited (RIL).

Question. Which aspects of human development does the government need to pay attention ?
Answer: Government needs to pay attention to facilities like availability of food and nutrition, safe drinking water and housing facilities for the poor.

Question. Which are the basic services ?
Answer: Services such as hospitals, educational institutions, police stations, defence, post and telegraph services, banks, insurance companies, courts, municipal corporations, transport, etc. are considered as basic services.

Question. Give any two examples of informal sector of credit.
Answer: (a) Credit from 'moneylenders'. (b) Credit from 'family members'.

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.
Answer: (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 : 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.
Answer: (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 : 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.
Answer: (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 : 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.
Answer: (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 : 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.
Answer: (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 : 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.
Answer: (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.

Question. Assertion : Reliance industries is a privately-owned firm.
Reason : Government is a major stakeholder in reliance industries.
Answer: (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 : 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.
Answer: (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 : 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.
Answer: (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, 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.
Answer: (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 : In India, the primary sector is the largest employer.
Reason : The demand for services has increased enormously.
Answer: (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.