NCERT Class Ten Economics Question-answers

 Chapter 2: Sector of the Indian Economy

 Short Answer Type Questions. [3 Marks]

1. Give one way of creating more employment in an economy.

Ans. By improving the education and health infrastructure in an economy we can provide lakhs of jobs for teachers, doctors, nurses etc. A study conducted by the Planning Commission

2. Define Gross Domestic Product (GDP).

Ans. The value of final goods and services produced in each sector during a particular year gives us the total production of this sector for that year. And the sum of production in all the three sectors provides us Gross Domestic Product (GDP) of a country.

3. Who are the two different kinds of people included in the Service sector?

Ans. The economy needs not only physical goods but also services like transportation of goods, storage of goods, banking and insurance and so on. These services are needed by households and primary and secondary sectors.

The two different kinds of people are as follows:

(i) The service sector includes some essential services provided by highly skilled and educated workers such as teachers, doctors, engineers, lawyers, etc. and

(ii) Services provided by washermen, barbers, cobblers, lawyers etc. needed by households.

4. What are the two reasons behind the rapid growth of the service sector in India?

Ans. Two reasons behind the rapid growth of the service sector in India are:

(i) The service sector provides the basic services for the development and provision of which government takes responsibility.

(ii) The development of agriculture and industry requires the development of services such as transport, storage, trade, means of communication etc.

5. How the classification of economic activities into primary, secondary and tertiary is useful? Explain.

Ans. Classification of economic activities is useful in the following ways:

(i) It gives information about the growth of different sectors indicating economic development.

(ii) It aids in finding out how much goods and services are produced and how many people work in each sector.

(iii) It helps in knowing the contribution of each sector separately in the Gross Domestic Product of the country.

(iv) It provides information about the employment conditions in each sector.

6. Give two examples each of primary sector industry, secondary sector industry and tertiary sector industry.

Ans. Primary Sector Industry: Dairying and Fishing.

Secondary Sector Industry: Sugar Mills and Cotton Textiles.

Tertiary Sector Industry: Transportation and Warehousing.

7. Write two measures adopted to create more employment?

Ans. The following measures can be adopted to create more employment.

(i) More irrigation facilities should be provided to enable the farmers to grow two or three crops in a year instead of only one.

(ii) One or two members of the family can be made to work on daily wages in the field of a big farmer.

8. Why do you think MGNREGA 2005 is referred to as ‘Right to work’?

Ans. NREGA 2005 is referred to as ‘Right to work’ because, under MGNREGA 2005, all those who are able to work, and are in need of work can apply for work. Thus one person has been guaranteed 100 days of employment in every rural household in a year by the government. If the government fails in its duty to provide employment within 15 days it will give unemployment allowances to the unemployed people.

9. Explain the term GDP. Why are only ‘final goods and services’ counted in GDP?

Ans. GDP means the Gross Domestic Product of a country. It is the value of all final goods and services produced within a country during a particular year. Only the final goods and services are counted in the GDP. For example, if wheat is sold at 8 per kg to the flour mill, which sells flour to a biscuit company, which then uses flour to make biscuits. Then the value of biscuits would be counted, not the value of flour. The value of biscuits contains the value of intermediary goods.