Sectors of the Indian Economy — Class 10 Social Science NCERT Solutions (Free)
Free step-by-step NCERT solutions for Class 10 Social Science chapter "Sectors of the Indian Economy" — 6 important questions with detailed answers for CBSE board exam preparation.
TL;DR: Free step-by-step NCERT solutions for Class 10 Social Science chapter "Sectors of the Indian Economy" — 6 important questions with detailed answers fo…
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NCERT Solutions for Class 10 Social Science — Sectors of the Indian Economy. Step-by-step answers to all 6 textbook questions from this chapter, written for CBSE board preparation and free to use.
Sectors of the Indian Economy — All 6 Questions Solved
Q1. What are the three sectors of an economy and what does each include?
The three sectors are: (1) Primary Sector: Agriculture, forestry, mining, and fishing—extracting raw materials from nature, (2) Secondary Sector: Manufacturing and construction—converting raw materials into finished goods, (3) Tertiary Sector: Services including commerce, transport, healthcare, education, entertainment, and government services. Each sector contributes differently to GDP and employment.
Q2. How has the contribution of each sector to India's GDP changed over time?
Historically, the primary sector dominated India's economy. With industrialization, the secondary sector grew. Today, the tertiary (service) sector contributes the largest share to GDP (over 50%), followed by the secondary sector. The primary sector's contribution has declined but still employs a large rural population. This shift reflects India's transition from agricultural to service-based economy.
Q3. What is the informal sector and what is its significance in India?
The informal sector includes unregulated, non-unionized activities like street vending, small workshops, and domestic help. It employs a large portion of India's workforce, especially in rural and urban poor areas. Though often low-wage and lacking benefits, the informal sector provides livelihoods. It's economically significant but faces regulation challenges and worker exploitation issues.
Q4. Why has India's service sector grown rapidly?
India's service sector has grown due to: (1) IT revolution creating demand for software and IT services, (2) BPO industry growth, (3) Globalization opening services to international markets, (4) Rising incomes increasing demand for services, (5) Government services expansion, (6) Tourism development. India has become a global leader in services, particularly IT and business services.
Q5. What challenges face India's agricultural sector?
Challenges include: (1) Pressure from rural-urban migration reducing agricultural workforce, (2) Climate change and water scarcity, (3) Low profitability causing farmer suicides, (4) Land degradation and soil depletion, (5) Poor market access and storage facilities, (6) Competition from imports. Despite mechanization and modernization, agriculture remains a challenged sector.
Q6. What measures are needed to ensure balanced sectoral development in India?
Measures include: (1) Supporting primary sector through investment in irrigation and technology, (2) Promoting manufacturing for job creation, (3) Ensuring service sector benefits all classes, (4) Integrating informal sector workers into formal economy, (5) Supporting agricultural processing industries, (6) Developing rural infrastructure, (7) Skill development and education for employment.
Sectors of the Indian Economy — Practice MCQs with Answers
Attempt these 20 multiple-choice questions after working through the solutions above. Each carries the correct option and the reasoning behind it, so a wrong answer tells you which idea to revisit.
MCQ 1. Which of the following activities falls under the Primary sector?
- A. Manufacturing cars
- B. Farming
- C. Banking
- D. Software development
Answer: B. Farming — Primary sector activities involve directly extracting or producing natural resources, such as farming, fishing, and mining.
MCQ 2. The service sector is also known as which of the following?
- A. Primary sector
- B. Secondary sector
- C. Tertiary sector
- D. Quaternary sector
Answer: C. Tertiary sector — The Tertiary sector primarily involves providing services rather than producing tangible goods, hence it is also called the service sector.
MCQ 3. What is it called when more people are employed in a job than actually required to perform it efficiently?
- A. Seasonal unemployment
- B. Disguised unemployment
- C. Structural unemployment
- D. Cyclical unemployment
Answer: B. Disguised unemployment — Disguised unemployment occurs when people appear to be employed but their marginal productivity is zero or very low, meaning their removal would not affect output.
MCQ 4. Why is the value of only 'final goods and services' counted when calculating Gross Domestic Product (GDP)?
- A. To avoid counting intermediate goods multiple times.
- B. Intermediate goods are not produced in a country.
- C. It is difficult to determine the value of intermediate goods.
- D. Final goods are consumed only by households.
Answer: A. To avoid counting intermediate goods multiple times. — Counting intermediate goods along with final goods would lead to double-counting and an overestimation of the economy's actual output.
MCQ 5. What is the full form of NREGA, a significant government scheme for employment?
- A. National Rural Employment Guarantee Act
- B. National Right to Education and Growth Act
- C. National Resource and Energy Generation Authority
- D. National Rural Economic Growth Agency
Answer: A. National Rural Employment Guarantee Act — NREGA, now known as MGNREGA, is a crucial Act aimed at guaranteeing employment in rural areas of India.
MCQ 6. Historically, what has been the typical sequence of shifts in employment share across different sectors in developed economies?
- A. Tertiary to Secondary to Primary
- B. Primary to Tertiary to Secondary
- C. Primary to Secondary to Tertiary
- D. Secondary to Primary to Tertiary
Answer: C. Primary to Secondary to Tertiary — As economies develop, employment typically shifts from agriculture (primary) to manufacturing (secondary) and then further towards services (tertiary).
MCQ 7. Which of the following is a characteristic feature of the organised sector?
- A. No fixed working hours
- B. Employment is not secure
- C. Workers get social security benefits
- D. Rules and regulations are not followed
Answer: C. Workers get social security benefits — The organised sector is characterized by formal processes, secure employment, adherence to government rules and regulations, including social security benefits like provident fund and gratuity.
MCQ 8. The primary objective of the public sector is:
- A. To earn maximum profit
- B. To provide goods and services at the lowest possible cost
- C. To provide public welfare and basic amenities
- D. To compete with the private sector
Answer: C. To provide public welfare and basic amenities — The public sector is owned and operated by the government, primarily focusing on social welfare and providing essential services to citizens, often without a profit motive.
MCQ 9. If the production of cotton textiles in the secondary sector declines sharply, which other sector is most likely to be immediately and significantly affected?
- A. Tertiary sector (e.g., banking)
- B. Primary sector (e.g., cotton farming)
- C. Other secondary sectors (e.g., steel manufacturing)
- D. Public sector (e.g., government administration)
Answer: B. Primary sector (e.g., cotton farming) — The secondary sector (textile manufacturing) relies heavily on the primary sector (cotton farming) for its raw materials, so a decline in manufacturing directly reduces demand for the primary product.
MCQ 10. Which of the following is an example of a service activity?
- A. Fishing
- B. Sugar production
- C. Teaching
- D. Mining
Answer: C. Teaching — Teaching provides a service (education) rather than producing a tangible good, classifying it under the Tertiary or service sector.
MCQ 11. In India, which sector has shown the most significant increase in its share of Gross Domestic Product (GDP) over the last few decades, while not necessarily leading to an equivalent increase in employment?
- A. Primary sector
- B. Secondary sector
- C. Tertiary sector
- D. Public sector
Answer: C. Tertiary sector — The service (tertiary) sector has emerged as the largest contributing sector to India's GDP, but its growth has been 'jobless' in many areas, meaning it hasn't generated employment proportionally.
MCQ 12. Why is employment in the unorganised sector characterized by low wages, irregular work, and no job security?
- A. The government actively discourages this sector.
- B. There is no unionization or collective bargaining power.
- C. Workers in this sector lack skills.
- D. This sector is highly competitive.
Answer: B. There is no unionization or collective bargaining power. — The unorganised sector lacks formal regulations and worker protection, meaning employers can dictate terms without facing collective bargaining or strong legal oversight, leading to exploitation.
MCQ 13. Which of the following measures is essential to protect workers in the unorganised sector?
- A. Encouraging them to migrate to cities
- B. Providing free government housing
- C. Strict implementation of labour laws and support for their organization
- D. Disbanding the unorganised sector completely
Answer: C. Strict implementation of labour laws and support for their organization — Effective enforcement of labour laws (like minimum wage) and empowering workers to form unions or self-help groups are crucial steps to improve working conditions and protect rights in the unorganised sector.
MCQ 14. Which of the following is an example of a private sector enterprise?
- A. Indian Railways
- B. Post Office
- C. Tata Steel
- D. All India Radio
Answer: C. Tata Steel — Tata Steel is owned and operated by a private company (the Tata Group), distinct from government-owned entities.
MCQ 15. A small farm field usually requires 4 workers, but a family of 7 people works on it, producing the same amount as 4 workers would. This situation exemplifies:
- A. Seasonal unemployment
- B. Cyclical unemployment
- C. Disguised unemployment
- D. Structural unemployment
Answer: C. Disguised unemployment — This is a classic example of disguised unemployment, where additional workers contribute nothing to the total output, indicating surplus labour.
MCQ 16. Which of the following is NOT a primary reason for the rapid growth of the Tertiary sector in India in recent decades?
- A. Increased demand for basic services (hospitals, schools).
- B. Development of information and communication technology (ICT).
- C. Rising incomes leading to demand for tourism, shopping, private schools.
- D. Increased government investment in agricultural irrigation projects.
Answer: D. Increased government investment in agricultural irrigation projects. — While government investment in agriculture is important, it primarily boosts the primary sector. The other options directly contribute to the growth of services.
MCQ 17. Which of the following is considered a final good?
- A. Wheat bought by a flour mill
- B. Cotton bought by a textile factory
- C. Sugar bought by a confectionery shop
- D. A loaf of bread bought by a household
Answer: D. A loaf of bread bought by a household — A final good is one that is ready for consumption by the end-user and not intended for further processing or resale.
MCQ 18. In what areas does the government primarily need to support the unorganised sector workers?
- A. Only by providing entertainment facilities.
- B. By ensuring minimum wages, health, and education facilities.
- C. By offering luxurious cars and housing schemes.
- D. By creating jobs only in urban areas.
Answer: B. By ensuring minimum wages, health, and education facilities. — The government's role is to provide essential social security and basic necessities to vulnerable workers who lack formal protection, ensuring a decent standard of living.
MCQ 19. Despite the significant growth of the Tertiary sector in India, why does the Primary sector still employ the largest share of the workforce?
- A. The Tertiary sector does not create enough jobs.
- B. Many tertiary sector jobs require high skills that a large part of the population lacks.
- C. There is widespread disguised unemployment in the primary sector, keeping many people nominally employed.
- D. All of the above.
Answer: D. All of the above. — The combination of insufficient job creation in the services sector, a mismatch between available skills and job requirements, and the pervasive issue of disguised unemployment in agriculture collectively explains why the primary sector retains the largest employment share.
MCQ 20. Economic activities are classified into primary, secondary, and tertiary sectors based on what?
- A. The ownership of enterprises
- B. The nature of the activity
- C. The profit motive
- D. The number of employees
Answer: B. The nature of the activity — This classification categorizes economic activities based on whether they involve extracting natural resources, manufacturing goods, or providing services.
How to Use These Solutions
Attempt each question yourself first and only then compare with the worked answer. Marks in the CBSE board exam are awarded for the METHOD as much as the final result, so reproduce the steps rather than memorising the last line. Where a solution states a law, a formula or a definition, learn that wording — examiners look for it.
Related practice for this chapter: chapter MCQs, previous-year questions, revision notes and sample papers.