NCERT Class 10 Economics Chapter 2 Exercise Solutions – Sectors of the Indian Economy
Short Introduction
This chapter explains how economic activities are classified into Primary, Secondary, and Tertiary Sectors. It also discusses Organised and Unorganised Sectors, Public and Private Sectors, employment generation, GDP, and the growing importance of the service sector in India. These solutions provide detailed explanations for all NCERT exercise questions in a student-friendly manner.
Quick Information Box
| Particular | Details |
|---|---|
| Class | 10 |
| Subject | Economics |
| Chapter | 2 |
| Chapter Name | Sectors of the Indian Economy |
| Board | CBSE/NCERT |
| Topics Covered | GDP, Employment, Economic Sectors, Organised & Unorganised Sectors |
Concepts Used (Topics Covered)
• Primary Sector
• Secondary Sector
• Tertiary Sector
• Gross Domestic Product (GDP)
• Employment and Unemployment
• Disguised Unemployment
• Organised Sector
• Unorganised Sector
• Public Sector
• Private Sector
• Economic Development
Important Formulas
1. GDP Formula
GDP = Value of All Final Goods and Services Produced Within a Country During a Year
2. Sector Share Formula
Sector Share (%) = (Sector GVA ÷ Total GVA) × 100
3. Employment Share Formula
Employment Share (%) = (Workers in Sector ÷ Total Workers) × 100
Question 1
Fill in the blanks using the correct option given in brackets.
(i) Employment in the service sector ______ increased to the same extent as production.
Answer:
has not
Explanation:
Although production in the service sector increased rapidly, employment did not increase at the same pace.
(ii) Workers in the ______ sector do not produce goods.
Answer:
tertiary
Explanation:
The tertiary sector provides services rather than producing physical goods.
(iii) Most of the workers in the ______ sector enjoy job security.
Answer:
organised
Explanation:
Workers in the organised sector receive regular salaries and employment benefits.
(iv) A ______ proportion of labourers in India are working in the unorganised sector.
Answer:
large
Explanation:
More than 90% of India’s workforce is employed in the unorganised sector.
(v) Cotton is a ______ product and cloth is a ______ product.
Answer:
natural, manufactured
Explanation:
Cotton comes from agriculture, while cloth is produced in industries.
(vi) The activities in primary, secondary and tertiary sectors are ______.
Answer:
interdependent
Explanation:
All sectors depend on one another for production and services.
Question 2
Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:
Answer:
(iii) Ownership of enterprises
Explanation:
The basis of classification is who owns and manages the enterprise.
(b) Production of a commodity mostly through the natural process is an activity in:
Answer:
(i) Primary sector
Explanation:
Agriculture, forestry, and fishing depend on natural resources.
(c) GDP is the total value of:
Answer:
(ii) All final goods and services
Explanation:
Only final goods and services are counted to avoid double counting.
(d) In terms of GVA, the share of tertiary sector in 2017–18 is between:
Answer:
(iii) 50 to 60
Explanation:
The tertiary sector contributed more than half of India’s GVA.
Question 3
Match the Following
| Problems Faced by Farming Sector | Possible Measures |
| Unirrigated land | Construction of canals by the government |
| Low prices for crops | Procurement of food grains by government |
| Debt burden | Banks to provide credit with low interest |
| No job in off-season | Setting up agro-based mills |
| Forced sale to traders after harvest | Cooperative marketing societies |
Explanation:
These measures improve farmers’ income and reduce agricultural distress.
Question 4
Find the odd one out and state why.
(i) Tourist guide, dhobi, tailor, potter
Answer:
Potter
Reason:
Potter belongs to the secondary sector while others provide services.
(ii) Teacher, doctor, vegetable vendor, lawyer
Answer:
Vegetable vendor
Reason:
Vegetable vendor deals in trading activities, while others provide professional services.
(iii) Postman, cobbler, soldier, police constable
Answer:
Cobbler
Reason:
Cobbler works independently, while others are generally government employees.
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Answer:
Jet Airways
Reason:
Jet Airways belongs to the private sector, while others belong to the public sector.
Question 5
Percentage of workers in the unorganised sector
Given:
Organised = 15% + 15% = 30%
Unorganised = 20% + 50% = 70%
Answer:
70% of workers are employed in the unorganised sector.
Explanation:
Adding all categories under the unorganised sector gives 70%.
Question 6
Is classification into primary, secondary and tertiary sectors useful?
Answer:
Yes, this classification is very useful.
Explanation:
- Helps understand economic structure.
- Shows contribution of each sector to GDP.
- Helps government make policies.
- Identifies employment patterns.
- Enables comparison between countries.
Conclusion:
Sectoral classification is essential for economic planning and development.
Question 7
Why should one focus on employment and GVA?
Answer:
Employment and GVA help measure economic performance.
Importance of Employment
• Shows job opportunities.
• Indicates living standards.
• Reflects workforce participation.
Importance of GVA
• Measures sector contribution.
• Indicates economic growth.
• Helps compare sector performance.
Other Issues
• Working conditions.
• Income distribution.
• Job security.
• Productivity.
• Worker welfare.
Question 8
Make a list of occupations and classify them.
Example List
| Occupation | Sector |
| Farmer | Primary |
| Fisherman | Primary |
| Factory Worker | Secondary |
| Carpenter | Secondary |
| Teacher | Tertiary |
| Doctor | Tertiary |
| Shopkeeper | Tertiary |
| Bank Employee | Tertiary |
Explanation
Primary Sector → Uses natural resources.
Secondary Sector → Manufacturing activities.
Tertiary Sector → Service-related activities.
Conclusion
Classification helps understand the nature of economic activities and their contribution to development.
Common Mistakes Students Make
• Confusing tertiary sector with secondary sector.
• Counting intermediate goods in GDP.
• Assuming all service-sector jobs are high paying.
• Mixing organised and unorganised sectors.
• Ignoring disguised unemployment examples.
Exam Tips
✓ Learn definitions of all three sectors.
✓ Remember GDP includes only final goods.
✓ Revise organised vs unorganised sector differences.
✓ Practice sector-based examples.
✓ Use proper economic terms in answers.
Practice MCQs
1. Which sector is also known as the service sector?
A. Primary
B. Secondary
C. Tertiary
D. Industrial
Answer: C
2. GDP includes:
A. Intermediate goods
B. Final goods and services
C. Raw materials only
D. Imports only
Answer: B
3. Agriculture belongs to:
A. Primary sector
B. Secondary sector
C. Tertiary sector
D. Public sector
Answer: A
4. Which sector provides job security?
A. Unorganised
B. Organised
C. Informal
D. Seasonal
Answer: B
5. Which sector contributes the most to India’s GVA?
A. Primary
B. Secondary
C. Tertiary
D. Agriculture
Answer: C
FAQ Section
Q1. What is GDP?
GDP is the total value of all final goods and services produced within a country during one year.
Q2. Which sector is called the service sector?
The tertiary sector.
Q3. What is disguised unemployment?
A situation where more people are employed than required and some workers contribute little to production.
Q4. Why is the organised sector better?
It provides job security, fixed wages, paid leave, and social benefits.
Q5. Which sector employs the largest number of people in India?
The primary sector.
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