Sectors of Economic Activities

Sections in this article

• Class X Economics Chapter 2 | Sectors Of The Indian Economy
• Class X Economics Chapter 2 | Comparing the Three Sectors
• Class X Economics Chapter 2 | Primary, Secondary And Tertiary Sectors
• Class X Economics Chapter 2 | Division of Sectors As Organized And Unorganized
• Class X Economics Chapter 2 | Sectors In Terms Of Ownership

One mark questions

1. Give an example of a major economic activity in the primary sector

Cultivation of wheat is a major economic activity in the primary sector.

2. What is meant by the Primary Sector?

Primary sector refers to activities that involve the production of goods from natural resources. For example, the cultivation of wheat, rice or cotton is an activity of the primary sector.

3. What is the basis for classifying sectors into primary, secondary and tertiary?

Sectors are classified into primary, secondary and tertiary depending upon the nature of the economic activity taking place in them.

4. Give two examples of economic activities which do not come under the primary sector

Banking and insurance

5. Why is tertiary sector also called service sector?

Tertiary sector is also called service sector because the activities of this sector generate services, rather than goods.

6. What is meant by economic activity?

Activities which result in the production of goods and services that add value to the national income are called economic activities.

7. Which sector helps in the development of the primary and secondary sector?

The tertiary sector helps in the development of the primary and secondary sector.

8. What is a natural product?

There are many economic activities that leverage natural resources. Products of such activities are natural products. Example: milk and honey

9. What are the new services included in the tertiary sector?

The new services that are included in the tertiary sector include internet cafes, ATMs, call centres and software companies.

10. Why is the primary sector also called agriculture and related sector?

The primary sector involves the production of goods using natural resources. Since most of the products in the primary sector are obtained from agriculture, fishing, dairy and forestry this sector is also called agriculture and related sectors.

11. What activities take place in the secondary sector?

In the secondary sector, natural products are changed into other forms through different ways of manufacturing.

12. What is the other name of the secondary sector?

The industrial sector

13. Give an example of a basic service?

Banking

14. Bank/ATM is an example of which sector?

Tertiary sector

15. Name four activities which fall under the primary sector

Agriculture, fishing, diary and forestry

3 or 5 mark questions

16. Which economic sector is the base for all other sectors? Explain with examples.

The primary sector is the base for all sectors. The primary sector produces goods from natural resources. Without these goods, other sectors cannot flourish.

For example, if farmers refuse to sell sugarcanes to sugar mills, they will not be able to produce sugar and they will have to shut down.

Likewise, it is the primary sector that provides iron ore to factories for producing steel. If they do not provide iron ore, cars and other products cannot be made. Likewise, without rubber obtained from the primary sector, tyres cannot be made in the secondary sector.

Thus, it is evident that all other sectors depend on the primary sector.

17. Classify the following ten economic activities under primary, secondary and tertiary sectors

Tailoring, teaching, fishing, bee keeping, money lending, banking, courier, working in a factory, flower cultivation and cloth making

Primary sector – fishing, bee keeping and flower cultivation

Secondary sector – tailoring, working in a factory, cloth making

Tertiary sector – teaching, money lending, banking, courier

18. Briefly explain how economic activities are classified into various sectors. Which of these is the most essential sector and why?

Economic activities are classified into three sectors.

Primary sector

Economic activities that involve the production of goods using natural resources come under the primary sector. Examples are: agriculture, fishing, forestry

Secondary sector

This sector involves activities that change natural products into other forms by way of some manufacturing processes. Industrial activities belong to this sector. Industrial products cannot be directly obtained from nature. Actually, they are produced by putting natural products through some manufacturing processes. For example, trye is made from rubber which is a natural product. Tyre, however, is not a natural product as it is made in factories by putting rubber through certain manufacturing processes. Likewise, garment making is a secondary activity because garments cannot be directly obtained from nature. However, some fibres like cotton used for making clothes are obtained from nature. Hence, cotton production belongs to the primary sector whereas cloth making belongs to the secondary sector.

Tertiary sector

The tertiary sector mainly involves services. It helps the primary and secondary sectors by providing the support they need. Banking, transportation, communication and trade are some examples of tertiary activities.

The primary sector is the most essential sector because it provides raw materials to the secondary sector and also promotes the tertiary sector. About two-thirds of Indian population are directly or indirectly engaged in primary sector activities.

19. Explain the meaning of tertiary sector. Mention any four economic activities of this sector.

The tertiary sector is also called the services sector because activities in the tertiary sector generate services, rather than goods. The tertiary sector helps in the development of the primary and secondary sectors by offering them the support they need.

Different types of economic activities included in the tertiary sector are:

Transportation – goods that are produced by the primary and secondary sectors need to be transported from place to place with the help of trucks and trains.

Storage: Sometimes goods need to be stored to enhance their shelf life. Cold storage is an example of this.

Communication: communication plays a crucial role in the movement of goods and services. For example, communication is essential between people working in different sectors for the smooth functioning of the society and economy.

Banking

Banks provide the economic help that producers and manufacturers in the primary and secondary sector need to continue with their economic activities.

20. Explain the significance of secondary sector in the economic development of a country

The secondary sector involves activities that change primary or natural products into manufactured goods. For example, it involves the production of tyre from rubber and clothes from cotton.

The secondary sector is important because it transforms raw materials into commodities.

It employs thousands of skilled and unskilled people and use mechanical and electrical energy to produce goods.

It creates sufficiency in the country by producing the goods people need.

21. Explain the importance of tertiary or service sector

The tertiary sector does not produce any goods but it helps in the development of primary and secondary sectors.

Transport, banking and storage, for example, are essential for the development of activities in the primary and secondary sectors.

In any country, services such as hospitals, educational institutions, banks, postal services, police stations and courts are essential for the normal functioning.

When the economy grows, there will be a greater demand for more services. For example, there will be a demand for more restaurants, private hospitals, private schools etc.

Recently, new services such as those based on information and communication technology have also become very important.

22. Is it important to classify economic activities into primary, secondary and tertiary sectors?

Yes, it is essential to classify economic activities into primary, secondary and tertiary because this classification allows us to know the share of each sector in the GDP. It gives us more information about the employment opportunities generated by each sector. In addition, it helps in planning for the future.

Class X Economics Solutions

• Class X Economics Chapter 1 Development | Free NCERT Solutions
• Class X Economics Chapter 2 | Sectors of the Indian Economy | Expected Questions | Part 1
• Class X Economics Chapter 2 | Sectors of the Indian Economy | Expected Questions | Comparing the three sectors
• Class X Economics Chapter 2 | Primary, Secondary And Tertiary Sectors
• Class X Economics Chapter 2 | Division of Sectors As Organized And Unorganized
• Class X Economics Chapter 2 | Sectors In Terms Of Ownership
• Class X Economics Chapter 3 | Money and Credit | Important Questions
• Class X Economics Chapter 4 | Globalization and the Indian economy | Important questions
• Class X Economics Chapter 5 | Consumer Rights | Important Questions