CBSE

Important Questions
Class 10 Social Science
Ch-02 Sectors of the Indian Economy

MCQs

Q.1During the period between 1973 to 2003, the production has increased most in the

(a) primary sector (b) secondary sector

(c) tertiary sector (d) all the three sectors

Ans.(c) tertiary sector

Q.2 GDP is the value of……….. produced during a particular year :

(a) All goods & services (b) All final goods & services

(c) All intermediate goods &services (d) All intermediate & final goods and services

Ans.(b) All final goods & services

Q.3 The sectors are classified in to public and private sectors on the basis of

(a) Employment conditions (b) The nature of economic activity

(c) Ownership of enterprises (d) Number of workers employed in the enterprises

Ans.(c) Ownership of enterprises

Q.4 NREGA 2005 guarantees work for how many days in a year

(a) 100 (b) 120

(c)150 (d) 90

Ans.(a) 100

Q.5 Which one of the following is a public sector enterprise?

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(a) TISCO (b) RIL

(c) Indian Railway (d) WIPRO

Ans.(c) Indian Railway

Q.6 Which was the largest producing sector in 1973?

(a) Primary sector (b) Secondary sector

(c) Tertiary sector (d) Public sector

Ans.(a) Primary sector

SHORT ANSWER TYPE QUESTIONS

Q.1 What is the differences between public and private sectors?

Ans.

Public Sector Private Sector

(i) Ownership of assets and delivery of

(i) The government owns most of the assets
services is in the hands of private
and provides all the services.
individuals or companies.

(ii) The purpose of the public sector is not

(ii) Activities in the private sector are guided
just to earn profit, but also to raise the
by the motive to earn profit.
welfare of the economy.

(iii) Tata Iron and Steel Company Limited or

(iii) Railways or post office is an example of
Reliance Industries Limited are privately
the public sector.
owned.

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Q.2Though maximum share of GDP is coming from tertiary sector, but still the share of
employment in the primary sector is maximum. Discuss.

Ans : (a) This situation is because not enough jobs are created in the secondary and tertiary
sectors.

(b) Though the industrial production of goods went up by eight times, but employment in the
industry went up by only 2.5 times.83

(c) Similarly in the tertiary sector, production rose by 11 times but employment rose less
than three times. As a result, more than half of the population is dependent on the primary
sector which contributes only a quarter of GDP.

Q.3 Why does only final goods and services are included while calculating National
Income?

Ans: Only final goods and services are included while calculating National Income because:

(a) Final goods are those goods which have crossed the boundary line of production and are
ready for final consumption and investment.

(b) The value of final goods already includes the value of all the intermediate goods that are
used in making the final goods. This would lead to the problem of double counting if all the
goods of the economy will be included while calculating national income.

(c) This should be avoided because if the value of any commodity is counted more than once
it will result in overestimation of national income.

Q.4 What is the meaning of under employment? In which economic sector is under
employment conditions more prevalent? &Why?

Ans : A condition in which each individual appears working but no one is fully employed.
This is the situation of under employment. People under such type of employment cannot
utilize their potential and capacity in full.

It is in primary sector because-

(i) This sector comprises the poorest section of society in majority

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(ii) People engaged in this sector are illiterate or semi-literate.

LONG ANSWER TYPE QUESTIONS

Q.1 Why is the tertiary sector becoming more important in India? Explain.

Ans : The tertiary sector becoming more important in India because :

(i) In any country several basic services like transport, bank, insurance, educational
institutions etc are required and the government has to take responsibility for the provision
of these services.

(ii) The development of agriculture and industry lead to the development of services such as
transport, trade, storage etc.

(iii) As income level rises, certain section of people started demanding many services like
eating out, tourism, private hospital etc.

(iv) Certain new services such as those based on information and communication technology
have become important and essential

Q.2 What is the differences in the employment conditions between organized and un-
organized sectors of the economy?84

Ans :

Organized sector Un-organized sector

1. No such registration with the

1. Registration with the government.
government.

2. The labourers are expected to work for a

fixed 2. There is no fixed working hour.
number of hours.

3. The wages are fixed and extra payment

3. The labours get daily wages.

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 for
extra work

4. In addition to wages, people get some

extra
benefits like paid leaves, provident fund, 4. There is not any such benefit.
gratuity
etc.

5. There is a job security. 5. There is no job security.

6. The labours are given an appointment

6. There is no such provision of
letter
appointment letter.
stating all the terms and condition of work.

Q.1 The total income of the country divided by its total population is Called:

(a) National income (b) Per capital income

(c) Total income (d) None of these

Ans.(b) Per capital income

Q.2 Which organization publishes the Human Development Report:

(a) WHO (b) UNDP

(c) WTO (d) IMF

Ans.(b) UNDP

Q.3 Development of a country generally be determined by:

(a) its per capita income (b) its literacy level

(b) health status of its people (d) all above

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Ans.(d) all above

Q.4 As per Human Development Report 2006 which neighboring country has the highest
income following –

(a) Sri Lanka (b) India

(c) Pakistan (d) Nepal

Ans.(a) Sri Lanka

SHORT ANSWER TYPE QUESTIONS

Q.1 Why do different people have different goals for development?

Ans: Different people have different goals for development because:

Different people have different aspiration and desire. Some may like to have `more income
and better quality of education for their children, while others may require no social
discrimination and high support price for their crops. So according to the living conditions
and the environment in which the person stays, he or she pursue for the goals. People seek
things that are most important for them i.e., that which can fulfill their aspiration or desires.

Q.2 Why average income is taken into consideration instead of total income while
making comparison between countries?

Ans: The total income of the country is the income of all the residents of the country. For
comparison between countries, total income is not such a useful measure. Since countries
have different population, comparing total income will not tell us what an average people is
likely to earn. Hence we compare the average income which is the total income of the
country divided by its total population.
So, Average income = Total income
Total population
The average income is also called per capita income.

Q.3 Write a paragraph on your nation that what should India do, to become a developed
country?

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Ans.(i) Control the rate of increasing population.

(ii) Use of latest technology, irrigation facility, chemical fertilizers, and all information should
be provided to farmers.

(iii) New economic policy, international trade, liberalization and globalization should be
adopted sincerely and effectively.

(iv) Adequate facilities related with infrastructure, education, health, electricity, water,
transport etc should be provided to all people of all regions and areas.81

Q.4 What is the main criteria used by the World Bank in classifying different countries?
What are the limitations of this criterion, if any?

Ans: Per capita income is the main criteria used by World Bank.

Limitations of per capita income:

It enables to show how income is distributed among the people of the country.
Cost of pollution is not considered in this average.

Some other important aspects like infant mortality rate, literacy rate, net attendance ratio etc
are not considered while calculating per capita income.

LONG ANSWER TYPE QUESTIONS

Q.1 What is meant by sustainable economic development? Give its main features.

Ans: Sustainable development may be defined as development that meets the need of the
present generation without compromising the need of ability of the future generations to
meet their own needs. Environment and economy are inter-dependent and complementary
to each other. Hence the process of development should not ignore environmental issues.

The main features of sustainable development are as follow:

(i) It stresses meeting the needs of the present generation and future generation.

(ii) There should be restraints on wasteful luxurious consumption pattern.

(iii) Efforts should be made to invent environment friendly technology.

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(iv) Fast growing population should be effectively checked.

Q.2. What is human development index? Who has prepared it? Write about basic
components of human development measurement.

Ans: Human development index is the cumulative measurement of the overall development
of the people of a country.
It was prepared by United Nation Development Organization and it is published by UNDP.
The basic components of human development index are as follow:
a. Life expectancy at birth- It denotes average expected length of life of a person at the time
of birth. It is measured in terms of life expectancy in years.
b. Literacy- It is measured by gross enrollment ratio for three levels means enrollment ratio
for primary school, secondary school and higher education beyond secondary school. Per
capita income- It is calculated in dollars for all countries so that it can be compared. It is also
done in a way so that every dollar would buy the same amount of goods and services in any
country.

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