Welcome to StudyMats. This comprehensive educational guide for Class 10 Economics Chapter 2 Questions Answers is prepared to assist students in preparing effectively for their school, board, and competitive examinations. All questions, exercise solutions, and concept notes strictly adhere to the latest NCERT curriculum and CBSE guidelines.
Question 1
Fill in the blanks using the correct options:
(i) Employment in the service sector has not increased to the same extent as production.
Answer: has not
Explanation: Although the service sector contributes around 55 % to India’s GVA, employment growth has lagged as many jobs remain informal and unstable. (Source: PRS/Economic Survey 2017‑18)
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India work in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.
Question 2
Choose the most appropriate answer:
(a) Sectors are classified as public or private based on ownership of enterprises — Answer: (iii)
(b) Production by natural process is in the primary sector — Answer: (i)
(c) GDP is the total value of all final goods and services — Answer: (ii)
(d) In 2017–18, tertiary sector’s GVA share was between 50–60 % — Answer: (iii) (55.2 % share as per Economic Survey)
Question 3
Match the following:
Unirrigated land → (d) Construction of canals
Low crop prices → (b) Cooperative marketing societies
Debt burden → (e) Banks providing low‑interest credit
No off‑season jobs → (a) Setting up agro‑based mills
Forced to sell grains early → (c) Government procurement
Question 4
Find the odd one out and explain why:
(i) Potter — makes goods; others (tourist guide, dhobi, tailor) provide services.
(ii) Vegetable vendor — informal worker; others are professionals.
(iii) Cobbler — self‑employed; others are government employees.
(iv) Jet Airways — private company; others are public sector entities.
Question 5
Fourth row of the table (Surat study): small unregistered workshops → unorganised sector → 50 %.
Total unorganised sector in the city = 20 % (street/domestic) + 50 % (workshops) = 70 %.
Question 6
Ans.:Is classification into primary, secondary and tertiary useful?
Yes. It helps analyze how sectors contribute differently to GDP and employment, track economic structure, and guide policy decisions.
Question 7
Ans.:Why focus on employment and GVA per sector? What else matters?
Employment shows living standards; GVA measures economic value added. Other important issues include wages, job security, gender equity, informality.
Question 8
Ans.:Examples of adult work around you:
Primary: farmer, fisherman. Secondary: carpenter, tailor. Tertiary: teacher, shopkeeper, driver.
Question 9
Ans.:How is the tertiary sector different?
It provides services, not goods. For example, education (teacher), transport (bus driver), banking (bank teller).
Question 10
Ans.:What is disguised unemployment? Explain with rural and urban examples.
Disguised unemployment occurs when there are more workers than needed, so extra workers add no output. (Source: Investopedia / MapsofIndia)
Rural example: Five people work a farm needing only three. Urban example: extra cleaners in a shop where one suffices.
Question 11
Ans.:Distinguish between open unemployment and disguised unemployment:
Open: person wants work but doesn’t have any. Disguised: person is “employed” but productivity doesn’t change if he/she leaves.
Question 12
Ans.:“Tertiary sector is not playing a significant role...” Agree or disagree?
Disagree. The services sector contributed ~55 % to India’s GVA in 2017‑18. (Source: Economic Survey, PRS) It generates skilled jobs and supports other sectors.
Question 13
Ans.:What two kinds of people does the service sector employ?
1. Highly skilled/formal workers (e.g. IT professionals, doctors). 2. Low‑income informal workers (e.g. street vendors, domestic helpers).
Question 14
Ans.:Are workers in the unorganised sector exploited?
Yes — they often face low wages, no job security, lack of benefits, and unsafe working conditions.
Question 15
Ans.:How are activities in the economy classified on the basis of employment conditions?
Organised sector = registered jobs with contracts and benefits. Unorganised sector = informal jobs, irregular pay, no benefits.
Question 16
Ans.:Compare employment in organised vs unorganised sector:
Organised: job security, regular pay, benefits (e.g. bank employee). Unorganised: low wages, no security, no benefits (e.g. street vendor).
Question 17
Ans.:Explain the objectives of implementing the MGNREGA 2005:
• Guarantee 100 days paid work per rural household per year. • Build rural infrastructure (roads, ponds, canals). • Treat work as legal right; unemployment allowance if not provided within 15 days. • Reduce distress migration by ensuring local work availability. • Promote inclusion and gender equity (50% women, equal wages).
(Sources: MGNREGA Act; PIB; Mysuru campaign report)
Question 18
Ans.:Compare public and private sector activities (local examples):
Public: government school, municipal hospital (affordable + welfare). Private: tuition centres, private clinics (fee‑based).
Question 19
Ans.:Examples of well‑managed and badly‑managed organisations:
Public sector: Metro (efficient) vs overcrowded government schools (poor service). Private: reputable private school vs shop with bad customer service.
Question 20
Ans.:Why does government run public sector activities? Examples:
Activities: Railways, electricity, public hospitals, postal services. Government runs them to ensure essential services are affordable and accessible to all.
Question 21
Ans.:How public sector contributes to development:
Provides infrastructure, social services, employment; supports private sector’s productivity and inclusive growth.
Question 22: The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
Ans.:Protection for unorganised workers: wages, safety, health—explain with examples.
Wages: ensure minimum fair pay to construction/domestic workers. Safety: helmets/gloves for labourers. Health: access to insurance for street vendors or cleaners.
Question 23
A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Ans.:Organised sector: 4,00,000 workers → Rs 32,000 million income. Unorganised: 11,00,000 workers → Rs 28,000 million. Total: 1,500,000 workers; Rs 60,000 million.
To create jobs: promote small industries, skill training, urban services, and support micro‑enterprises with credit and markets.
Question 24
Analyze GVA data, compute sector shares and draw conclusions:
2000: Primary ~30%, Secondary ~25%, Tertiary ~45%
2013: Primary ~20%, Secondary ~28%, Tertiary ~52%
Conclusion: The tertiary sector grew fastest and now dominates, industry expanded, agriculture's share declined.
(Based on GVA data trend from 2000 to 2013)
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