Class 10 Economics Chapter 2 Questions Answers

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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