Sectors of the Indian Economy · Class 10 Economics: 100 flashcards

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1. What criterion is used to divide activities into primary, secondary and tertiary sectors?

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The nature of the activity.

2. What is a primary sector activity?

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Producing a good by exploiting natural resources, such as agriculture, dairy, fishing, forestry and mining.

3. Why is the primary sector called 'primary'?

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Because everything else we go on to make is built on top of it.

4. What is the primary sector also called?

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The agriculture and related sector.

5. What is the secondary sector?

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Work that takes something natural and remakes it into something else by manufacturing.

6. Where can secondary sector manufacturing take place?

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In a factory, a workshop or at home.

7. What is the secondary sector also called, and why?

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The industrial sector, because it came in time to be linked with the various industries that were set up.

8. Give three examples of secondary sector activities from the chapter.

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Spinning yarn and weaving cloth from cotton, making sugar or gur from sugarcane, and making bricks from earth.

9. How is the tertiary sector different from the other two?

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It does not produce goods; it provides services that aid the production process and meet other needs.

10. Name five tertiary activities that aid production.

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Transport, storage, communication, banking and trade.

11. What is the tertiary sector also called?

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The service sector.

12. Name some essential services that may not directly help production.

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Teachers, doctors, washermen, barbers, cobblers, lawyers, and administrative and accounting workers.

13. Name four new IT-based services.

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Internet cafés, ATM booths, call centres and software companies.

14. What would happen if farmers refused to sell sugarcane to a sugar mill?

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The mill would have to shut down — the secondary sector depends on the primary.

15. Suppose fertiliser or pumpsets got dearer. What follows?

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Farmers' cost of cultivation would rise and their profits would fall.

16. What would happen if transporters went on strike?

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Food would become scarce in urban areas, and farmers would be unable to sell their products.

17. Are the three sectors independent or interdependent?

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Interdependent.

18. Cotton is a ______ product and cloth is a ______ product.

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Natural; manufactured.

19. Classify: tailor, fishermen, courier.

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Tailor — secondary; fishermen — primary; courier — tertiary.

20. Classify: bee-keeper, potter, moneylender.

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Bee-keeper — primary; potter — secondary; moneylender — tertiary.

21. Why are values of goods added rather than their quantities?

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Because different goods such as cars, computers and nails cannot be added together meaningfully; their values can.

22. What is the value of 10,000 kg of wheat sold at Rs 20 per kg?

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Rs 2,00,000.

23. What are final goods?

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Goods and services that reach the consumers, such as biscuits sold in the market.

24. What are intermediate goods?

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Goods used up in producing final goods, such as wheat and flour in the biscuit example.

25. Why are only final goods counted in GDP?

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Because their value already includes the value of all intermediate goods used; counting both would count the same thing several times.

26. In the biscuit example, what is the value counted?

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Rs 80 — four packets at Rs 20 each.

27. Define GDP.

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The total value of all the final goods and services produced inside a country in a given year.

28. What does GDP show?

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How big the economy is.

29. Who measures GDP in India?

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A central government ministry, with the help of departments of all the states and union territories.

30. What does GVA adjust for?

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Taxes and subsidies.

31. Why does India report GVA by sector instead of GDP?

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To be at par with global practices.

32. What is the sum of production of the three sectors called?

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Gross Domestic Product (GDP).

33. Which sector was most important at the initial stages of development in developed countries?

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The primary sector.

34. What happened as agriculture prospered in the early stage?

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It produced more food, so more people could become craftspersons, traders, transporters, administrators and soldiers.

35. What led to the rise of the secondary sector?

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New methods of manufacturing, which brought factories that drew workers from farms.

36. Over roughly how long did the shift from primary to secondary happen?

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More than a hundred years.

37. What shift has taken place in developed countries in the past 100 years?

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A shift from the secondary to the tertiary sector, which is now most important in production and employment.

38. What does 'value added' mean?

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The extra value each producer adds at its stage; adding it across stages gives the value of the final good.

39. Correct this: 'To count goods we add the numbers produced in the last five years.'

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We add the values of final goods and services produced during a particular year.

40. Can an economy have more than one dominant sector?

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Yes — one or more sectors may be dominant in production and employment while others are small.

41. Which sector was the largest producing sector in India in 1977-78?

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The primary sector.

42. Which sector became the largest producing sector in 2017-18?

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The tertiary sector, replacing the primary sector.

43. Which sector's production grew the most between 1977-78 and 2017-18?

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The tertiary sector.

44. What was the tertiary sector's share in GVA in 2017-18?

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Between 50 and 60 per cent — about 54% in Graph 2.

45. What are 'basic services'? Give examples.

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Services every country needs, such as hospitals, educational institutions, post and telegraph, police stations, courts, municipal corporations, defence, transport, banks and insurance.

46. Why does growth of agriculture and industry raise demand for services?

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Because more production needs more transport, trade and storage.

47. What services do people demand as incomes rise?

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Eating out, tourism, shopping, private hospitals, private schools and professional training.

48. What is the fourth reason for the rise of the tertiary sector?

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A new class of service built on information and communication technology has become indispensable.

49. Which two kinds of people does the service sector employ?

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A limited number of highly skilled, educated workers, and a very large number of workers such as small shopkeepers, repair persons and transport persons who barely earn a living.

50. Which sector is still the largest employer in India?

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The primary sector.

51. What share of workers was in the primary sector in 2017-18, according to Graph 3?

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44%.

52. Why did employment not shift out of the primary sector?

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Because the secondary and tertiary sectors never created jobs in the numbers required.

53. How much did industrial output and industrial employment grow between 1977-78 and 2017-18?

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Output rose more than nine times; employment rose only about three times.

54. How much did service output and service employment grow?

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Output rose 14 times; employment rose only about five times.

55. What is underemployment?

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Where everybody looks employed, and every one of them is working below what they could actually do.

56. Why is underemployment also called disguised unemployment?

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Because it is hidden: people seem to be working, unlike someone who has no job and is visibly unemployed.

57. Describe Laxmi's situation.

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She owns about two hectares of unirrigated land growing jowar and arhar; all five family members work on it all year because they have nowhere else to go, so no one is fully employed.

58. What happens if two of Laxmi's family members take work elsewhere?

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The family earns extra income, and the farm's production does not fall.

59. Give an urban example of disguised unemployment.

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Casual workers such as painters, plumbers and repair persons who find work only some days, or street vendors who work all day but earn very little.

60. Distinguish open unemployment from disguised unemployment in one line.

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In open unemployment a person clearly has no job; in disguised unemployment a person appears to be working but is not needed for the output produced.

61. How would a well help Laxmi's family?

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It would let her irrigate the land and grow a second crop, wheat, in the rabi season, giving work to two more family members.

62. How much employment does one hectare of wheat provide?

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Work for two people for 50 days, including sowing, watering, applying fertiliser and harvesting.

63. How can a new dam and canals reduce underemployment?

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By irrigating many farms, creating a lot of employment within agriculture itself.

64. How do better rural roads and storage create employment?

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Farmers can transport and sell more crops, and people in transport and trade also get productive work.

65. Why does Laxmi need cheap credit?

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To buy seeds, fertilisers, equipment and pumpsets in time without paying high interest to moneylenders.

66. Give two examples of industries that can be set up in semi-rural areas.

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A dal mill for arhar and chickpea, and a cold storage for potatoes and onions (also honey collection centres and food processing).

67. Why is a cold storage useful to farmers?

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Potatoes and onions can be held back and brought to market once the price has risen.

68. What share of India's population is aged 5-29, and how many of them attend educational institutions?

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About 60% are aged 5-29; only about 51% of them attend educational institutions.

69. How many jobs could be created in education, according to the Planning Commission?

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Nearly 20 lakh jobs.

70. How many additional jobs a year could better tourism provide?

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More than 35 lakh.

71. What is the Planning Commission now called?

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NITI Aayog.

72. What does the full form of MGNREGA 2005 stand for?

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Mahatma Gandhi National Rural Employment Guarantee Act 2005.

73. How many days of work a year did MGNREGA guarantee?

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100 days.

74. Who was covered by MGNREGA's guarantee?

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All those in rural areas who were able to, and in need of, work.

75. What if the government failed to provide work under MGNREGA?

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It would give unemployment allowances to the people.

76. Which types of work were preferred under MGNREGA?

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Work that would, in future, help increase production from land.

77. In about how many districts was the Right to Work implemented?

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About 625 districts.

78. What replaced MGNREGA in 2025?

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The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission, known as Viksit Bharat-G RAM G 2025.

79. Why is MGNREGA called the 'Right to Work'?

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Because it made work a legal guarantee: eligible rural people could demand 100 days of employment, or receive an unemployment allowance.

80. Why should we be worried about underemployment?

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Because labour that could produce more is wasted, incomes remain low and poverty continues.

81. On what basis are sectors classified into organised and unorganised?

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The conditions of employment — whether terms are regular and rules are followed.

82. On what basis are sectors classified into public and private?

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Ownership of enterprises — who owns the assets and delivers the services.

83. Define the organised sector.

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Enterprises or places of work where terms of employment are regular and people have assured work; they are registered by the government and follow its rules and laws.

84. Name two laws organised enterprises must follow.

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Any two of the Factories Act, Minimum Wages Act, Payment of Gratuity Act, and Shops and Establishments Act.

85. List four benefits of organised sector workers.

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Any four: job security, fixed hours with overtime, paid leave, holiday pay, provident fund, gratuity, medical benefits, safe workplace, pension.

86. Define the unorganised sector.

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Small and scattered units, largely outside government control, where rules are not followed and jobs are low-paid, irregular and insecure.

87. Give three conditions of Kamal's work.

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Any three: works 7.30 a.m. to 8 p.m.; gets only daily wages; not paid for days off; no leave or paid holidays; no formal letter; can be asked to leave any time.

88. Why is agriculture called an unorganised sector activity?

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Because in Table 2.3, 231 of 232 million agricultural workers — about 99.6% — are unorganised; farmers work on their own and hire labour as needed.

89. What percentage of workers were in the unorganised sector in Table 2.3 (late 1990s)?

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About 83% (393 of 475 million) in the late 1990s; only about 17% were organised.

90. Why are organised sector jobs scarce?

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They have been expanding very slowly; some enterprises operate informally to evade taxes and labour laws; and since the 1990s many organised workers have lost jobs.

91. Who are the vulnerable unorganised workers in rural areas?

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Farm labourers with no land of their own, small and marginal farmers, sharecroppers, and craftspeople — weavers, blacksmiths, carpenters, goldsmiths.

92. What share of rural households are small and marginal farmers?

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Nearly 80%.

93. Who are the vulnerable unorganised workers in urban areas?

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People working in small-scale industry, and casual labourers in construction, trade and transport, street vendors, head-load workers, garment makers and rag pickers.

94. Why is protection of unorganised workers needed for social development?

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Because most workers from scheduled castes, tribes and backward communities are in this sector and face social discrimination as well as low, irregular pay.

95. Give one example each of a public and a private sector enterprise.

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Public: Railways or the post office. Private: TISCO or Reliance Industries Limited.

96. How does the public sector differ in purpose from the private sector?

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The private sector is guided by profit; the public sector's purpose is not just profit, and it meets its costs through taxes.

97. Why does the government build roads, bridges and dams?

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They need large sums beyond the private sector's capacity, and collecting from thousands of users is hard; private firms would charge high rates.

98. How does the government support small industries through electricity?

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By producing and supplying electricity at rates they can afford, bearing part of the cost, so they do not shut down.

99. How does the government support both farmers and consumers?

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It buys wheat and rice from farmers at a fair price, stores them in godowns, and sells them at a lower price through ration shops.

100. Name two activities that are the primary responsibility of the government.

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Providing health and education facilities for all (also safe drinking water, housing for the poor, food and nutrition).

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