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Published on: 28/09/2019
Sectors of the Indian Economy
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Questions + Answers key
Take MCQ Social Science Test

1.
What is the meaning of underemployment? In which economic sector are underemployment conditions more prevalent? Why is it so? Explain two reasons.
2.
The primary sector employs the largest number of people in India. Give reasons.
3.
What are basic services? Who undertakes the responsibility for such services in a developing country?
4.
What are tertiary activities? Explain with examples.
5.
What are secondary activities? Explain with examples.
6.
What are primary activities? Explain with examples.
7.
Using examples from your area, compare and contrast that activities and functions of private and public sectors.
8.
How would income and employment increase if farmers were provided with irrigation and marketing facilities?
9.
Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up under this Act that would also increase the income of people? Discuss.
10.
Why do you think MGNREGA 2005 is referred to as 'Right to work'?
11.
Correct and arrange the important aspects for calculating GDP from this Jumble.
To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn't leave out anything, we add up all these goods and services.
12.
Describe the historical changes that have taken place in sectors of the economy in the developed countries.
13.
Explain how a shift has taken place between sectors in developed countries?
14.
Classify the following list of occupations under primary, secondary and tertiary sectors (Tailor, Basket weaver, Flower cultivator, Milk vendor, Fishermen, Priest, Courier, Workers in match factory, Money lender, Gardener, Potter, Bee-keeper, Astronaut, Call centre employee)
15.
Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
1.
(a) (i) Underemployment is a situation where people are apparently working but all of them are made to work less than their potential.
(ii) This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence it is called disguised unemployment.
(b) (i) Underemployment conditions are more prevalent in primary sector especially in agriculture.
(ii) Here there are more people than necessary and even if we move a few people out, production will not be affected.
(iii) In other words, workers in the agricultural sector are underemployed.
(iv) This may be due to non-availability of work or no money to invest.
(c) (i) This under employment also happens in other sectors.
(ii) For example there are thousands of casual workers in service sector in the urban area such as painters, plumbers, repair persons and others doing old jobs. These people do not get work every day.
2.
(i) There are no enough jobs created in the secondary and tertiary sectors.
(ii) While there has been a change in the share of three sectors in GDP, a similar shift has not taken place in employment.
(iii) Service sector in India employs different kinds of people.
At one end there are a limited number of services that employ highly skilled and educated workers. Sat the other end, there are a very large number of workers engaged in services such as small shopkeepers, transporters etc. Hence only a part of sector in growing in importance.
3.
(i) The services like hospitals, educational institutions, post and telegraph, police stations, courts, village administrative offices, municipal corporations, banks, defence transport, insurance companies etc are called basic services.
(ii) In the developing countries the government has to take the responsibility for provision of these services.
4.
(a) This sector covers those activities that aid the primary and secondary sectors. It provides services rather than goods and hence, it is also called the service sector.
(b) E.g. Transportation, education services, telephone, information technology, banking, health services etc.
(c) Share in India's GDP: 55%
5.
(a) It refers to the industrial activity that involves the manufacturing process. Goods are produced in big factories using natural or synthetic products as raw material.
(b) E.g. Textile production, construction, automobile, manufacturing etc.
(c) Share in India's GDP: 28%
6.
(a) Those activities wherein goods are produced by exploiting natural resources. It provides the basic raw materials for all goods subsequently produced.
(b) E.g. Agriculture, forestry, mining, fishing, animal husbandry etc.
(c) Share in India's GDP: 28%
7.
Differences between public sector and private sector are
| Public Sector | Private Sector |
| The main aim of this sector is public welfare. | The main aim of this Sector is to earn maximum profit. |
| It is controlled and managed by the government | It is controlled and managed by an individual or a group of individuals. |
| This sector provided basic facilities like education, health, food and security to the people. e.g the Indian Railways the Post Office and the BSNL | This sector provides consumer goods to the people. e.g. the Reliance, TISCO. |
8.
If irrigation facilitics are provided, then farmers can produce two or more crops, in their land besides their primary crops. lt will not only settle the disguised unemployment in the sector, but will also create new employment opportunities because of scope for growth. Market facilitation will boost the motivation in farming sector. Farmers now can sell their products in the market and will be motivated to produce more for more earning. It will also engage the extra workers i.e. disguised underemployed workers in marketing and give then opportunity for full employment.
Marketing is a part of tertiary sector, it has inter-dependency on Primary sector. Market facility will induce diversification in agricultural activities and provide scope for industries to be set-up in semi-rural areas and generate employment.
9.
Some of the activities which can be taken under this Act are; construction of road, construction of embankment on river, digging of ponds and wells, etc. These activities would provide double benefit. They will provide the much needed employment to the people and would help in development of village as well.
10.
MGNREGA 2005 was implemented with the objective to provide atleast 100 days employment to people living below poverty line. If the government fails in its duty to provide employment then it will give unemployment allowances to the people. In both cases, people are assured of allowances therefore the act is referred as 'Right to work'.
11.
Count the value of all final goods and services produced in an year to calculate GDP,
12.
The history of developed countries reveals a general pattern of development in their economic structure.
First, primary sectors predominantly contributed to GDP and held most of the employment. Then when agricultural activities increased, there was need for industrialisation and gradually industrial sectors dominated the economy.
Much of the workers shifted to industrial sector, but agriculture productivity did not hamper as industrial sector produced farm equipments, fertilisers, etc that increased the productivity. After a hundred years, service sector increased and most of the workers shifted to service sector. Now, service sector contributes maximum to the share of economy.
The service sector has now become the most important sector in terms of total production and employment generation without disturbing the production and productivity of other two sectors.
So, it is seen that the economic structure had been shifting from primary to secondary and finally to tertiary sector in developed countries. Similarly, almost all the developing countries are following the same path but may be in a different pace.
13.
The history of developed countries reveals a general pattern of development in their economic structure.
First, primary sectors predominantly contributed to GDP and held most of the employment. Then when agricultural activities increased, there was need for industrialisation and gradually industrial sectors dominated the economy.
Much of the workers shifted to industrial sector, but agriculture productivity did not hamper as industrial sector produced farm equipments, fertilisers, etc that increased the productivity. After a hundred years, service sector increased and most of the workers shifted to service sector. Now, service sector contributes maximum to the share of economy.
The service sector has now become the most important sector in terms of total production and employment generation without disturbing the production and productivity of other two sectors.
So, it is seen that the economic structure had been shifting from primary to secondary and finally to tertiary sector in developed countries. Similarly, almost all the developing countries are following the same path but may be in a different pace.
14.
Primary sector Flower cultivator, Fisherman, Gardener, Potter
Secondary sector Basket weaver, Worker in match factory, Bee-keeper
Tertiary sector Tailor, Milk vendor, Priest, Courier, Moneylender, Astronaut, Call centre employee
15.
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.
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