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Published on: 12/09/2019
Sectors of the Indian Economy
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Questions + Answers key
Take MCQ Social Science Test

1.
Explain the causes of unemployment in India and suggest measures to reduce unemployment in India?
2.
Distinguish between open unemployment and disguised unemployment.
3.
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 for generating more employment in the city?
4.
How are the activities in the economy classified on the basis of employment conditions?
5.
"workers are exploited in the unorganised sector." Give six reasons in support of your statement.
6.
The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions that follow:
| Workers In Different Sectors (in millions) | |||
| Sector | Organised | Unorganised | Total |
| Primary | 2 | 240 | 242 |
| Secondary | 9 | 54 | 63 |
| Tertiary | 17 | 76 | 93 |
| Total | 28 | 370 | 398 |
| Total in Percentage | 100% | ||
(a) What is the percentage of people in the unorganised sector in agriculture?
(b) Do you agree that agriculture is an unorganised sector activity? Why?
(c) If we look at the country as a whole, we find that ______% of the workers in India is in the unorganised sector. Organised sector employment is available to only about _____ % of the workers in India.
7.
Explain the ways by which more employment can be created in a country like India.
8.
Why should we be worried about underemployment?
9.
What does the history of developed countries indicate about the shifts that have taken place between sectors?
10.
Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
11.
The activities in primary, secondary and tertiary sectors are _________ (independent / interdependent)
12.
Cotton is a __________ product and cloth is a _________ product. (natural / man-made, manufactured/artificial)
13.
A ________ proportion of labourers in India are working in the unorganised sector. (large/small)
14.
Workers in the ______ sector do not produce goods. (tertiary/agricultural)
15.
Employment in the service sector ____________ increased to the same extent as production. (has/has not)
16.
How many days employment assurance has been provided under NREGA Act?
300
200
365
100
17.
Which of the following is not an activity of unorganised sector?
Teacher teaching in a school
A nurse working in a government hospital
A farmer irrigating his field
A clear working in the Post Office
18.
Which of the following is not applicable for a worker, who works in the organised sector?
He / she gets a regular salary at the end of the mouth
He / she gets medical allowance
He / she is not paid for leave
He / she got an appointment letter stating the terms and conditions of work when he/she joined this work
19.
Which of the following statement is true in respect to public sector
Government owns the assets
Big companies own most of the assets
An individual own most of the assets
A group of people owns most of the assets
20.
Which of the following acts would not apply to a company like TISCO?
Minimum wages act
National Rural Employment Guarantee act
Factories act
Payment of Gratuity act
21.
In term of GDP, the structure of tertiary sector in 2010-11 was?
Above 70%
Between 50% to 60%
Between 20% to 30%
Between 30% to 40%
22.
Sahara airlines and BSES are example of
Private sector
Public sector
Tertiary sector
All the above
23.
Which one of the following activities does not belong to the primary sector?
Dairy farming
Weaving
Agriculture
Mining
24.
The sectors are classified into public and private sector on the basis of:
employment conditions
the nature of economic activity
ownership of enterprises
number of workers employed in the enterprise
25.
| 1. | Unirrigated land | (a) | Setting up agro- based mills |
| 2. | Low prices for crops | (b) | So-operative marketing societies |
| 3. | Debt burden | (c) | Procurement of foodgrains by government |
| 4. | No job in the off season | (d) | Construction of canals by the government |
| 5. | Compelled to sell their grains to the local traders soon after harvest | (e) | Banks to provide credit with low interest |
1.
Following are the causes of unemployment in India.
(a) Excessive Burden of population on cultivation - Land is fixed as regards its area and geographical situations so employment opportunities from agriculture and its allied services are very limited. In such economies employment opportunities will have to be created in large number. If it cannot be attained, unemployment will tend to mount.
(b) Nearly 80% of rural households in India are in small and marginal farmer category.
(c) These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.
(d) In the urban areas, unorganized sector comprises mainly of workers in small scale industry casual workers in constructions trade and transport etc., and also those who work as street vendors, head load workers, garment makers, rag pickers etc.,
(e) The casual workers in both rural and urban areas need to be protected.
(f) We also find that majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganized sector.
2.
Open unemployment is an unemployment which is clearly visible and seen that some people who want to work but do not have the work. One such example is educated unemployment.
Disguised unemployment is a situation when some people are underemployed. They only divide the labour effort without any effective contribution to the growth of the sector. They are mostly found in primary sectors because of unavailability of work for them. If they are drawn out from work, there will be no such effect on production.
Disguised unemployment is more harmful than open unemployment because it often cannot be properly addressed due to its hidden nature and the potential of the human resource cannot be tapped.
3.
Table showing study of employment and income in Ahmedabad is as follows
| Sector | Workers Employed | Income Generated |
| Organised | 400000 | Rs 32000 million |
| Unorganised | 1100000 | Rs 28000 million |
| Total | 1500000 | Rs 60000 million |
Ways of generating more employment are
(i) To set-up industries that process vegetables and agricultural produce like potato, rice, wheat fruits, etc. which can be sold in outside market.
(ii) To promote and locate industries and services in outskirts of the city where a large number of people can get employment.
4.
Economic activities are classified into two types on the basis of employment conditions
(i) Organised Sector The organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They 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 Act, etc. Examples are Reliance Industries Limited, Tata Motors, etc
(ii) Unorganised Sector The unorganised sector contains enterprises not registered by the government. The unorganised sector is characterised by small and scattered units, which do not follow proper rules for employment or give any leaves or other benefits. Examples are casual workers in construction, shops, garages, etc.
5.
Yes, workers are exploited in the unorganized sector. This would be clear from the following points:
(a) There is no fixed number of working hours. The workers normally work 10 - 12 hours without paid overtime.
(b) They do not get other allowances apart from the daily wages.
(c) Government rules and regulations to protect the labourers are not followed there.
(d) There is no job security.
(e) Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
(f) Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.
6.
(a) 99.17%
(b) In case of agriculture, there is a blurred line between employers and employees. Let worker; in this case; does not have the facility of fixed working hours. He may or may not be getting adequate wages. There is not social security net present. Hence, agriculture can be kept under unorganised sector.
(c) 7%, 93%
7.
(a) Development of small scale and large scale industries can help in increasing employment in urban areas.
(b) Development of these industries will also result in development of the tertiary sector: which would further boost the employment generation.
(c) To support all these activities, there is also the need to develop the infrastructure like power, telecommunication and road
8.
We should worry about underemployment as due to this, the earning capacity of a person is reduced, resulting in a poor standard of living. Ultimately, this can also lead to poverty.
9.
The history of developed countries indicate that the shifts have taken place from primary to secondary and then to tertiary sector.
10.
Primary Sector This sector of the economy involves conversion of natural resources into primary products. Thus, this sector is directly associated with nature.
Secondary Sector It include those activities in which natural products are changed into other forms through manufacturing.
Tertiary Sector The activities that help in the development of primary and secondary sectors are covered in tertiary sector.
11.
( )
interdependent
12.
( )
natural, manufactured
13.
( )
large
14.
( )
tertiary
15.
( )
has not
16.
(b)
200
17.
(c)
A farmer irrigating his field
18.
(c)
He / she is not paid for leave
19.
(a)
Government owns the assets
20.
(b)
National Rural Employment Guarantee act
21.
(b)
Between 50% to 60%
22.
(d)
All the above
23.
(b)
Weaving
24.
(c)
ownership of enterprises
25.
( )
1. (d), 2. (c), 3. (e), 4. (a), 5. (b)
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