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Class X Economics | Chapter 2| Important Questions From Primary, Secondary, Tertiary Sectors

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Expected questions from the section primary, secondary and tertiary sectors in India.

Sections in this article

1. What was the share of the tertiary sector in India’s GDP in 2011-12?

The tertiary sector accounted for 60% of Indian economy in 2011-12.

2. In which year was National Rural Employment Guarantee Act implemented?

National Rural Employment Guarantee Act was implemented in 2005.

3. Give one suggestion to tackle the problem of unemployment in semi-rural areas

Encouraging agro-based industries will tackle the problem of unemployment in rural areas to a great extent.

4. Which sector employs the most people in India?

Currently the agriculture sector employs the most people in India.

5. Which sector has become more prominent in India over the last thirty years?

The tertiary sector gained more prominence over the last 30 years.

6. Which act implemented Right to Minimum Work?

The Right to Minimum Work was implemented through Mahatma Gandhi National Rural Employment Guarantee Act, 2005.

7. Suggest any two measures to reduce unemployment.

Agro-based industries should be set up.

Transport and storage facilities should be improved so that goods can be stored for a longer time and easily moved from place to place.

8. What is another name of underemployment?

Disguised unemployment is another name of underemployment.

9. What term is used to describe a situation in which more persons are employed on a job than is required?

Underemployment

10. What is disguised unemployment? Suggest any two measures to reduce unemployment.

Disguised unemployment refers to a situation where people are visibly employed but actually unemployed. In such situations, more people are employed in a job than is required. Disguised unemployment is more common in the primary sector.

Some ways to reduce unemployment

Small scale agro-based industries should be promoted

Dams and irrigation facilities should be built to boost agricultural activities

Roads and other transport facilities should be built

11. How can tourism provide additional employment to lakhs of people?

Tourism increases the demand for goods and services. For example, when more tourists arrive, there will be a greater demand for transport and accommodation facilities. This will lead to the development of better roads and more hotels. The construction of these facilities creates numerous jobs.

Tourists will need the service of guides, cabs and restaurants. In addition, the demand for souvenirs will increase. There will also be a greater demand for traditional handicrafts, traditional costumes and the like. Thus, tourism creates a lot of employment.

12. Why has the entire tertiary sector not grown in importance?

The tertiary sector employs different kinds of people and only a small number of them can earn huge salaries. The IT and related sectors, for example, employ a small number of highly skilled people who earn really well.

At the same time, a large number of people work as carpenters, artisans, mechanics, plumbers, drivers or tailors and they do not earn much. Thus, it is evident that while some areas of the tertiary sector have achieved tremendous growth, other areas are still lagging behind.  

13. Explain the problem of underemployment in the service sector in urban areas with examples.

Underemployment is a situation where people are visibly employed, but they are actually employed. This usually happens when more people than is required perform a certain job. In urban areas underemployment mainly occurs among people who do odd jobs. For example, people who work as electricians, mechanics, plumbers or repair persons may not be able to find work every day. They are employed but their earning potential is low because they spend many jobless days. At the same time, there are some people in the service sector who move from door to door selling their goods. Although they spend the entire day on this job, they manage to sell only a small number of products and hence earn very little money. Hence, although these people are employed, they earn very little.

14. How has NREGA helped the government in combating unemployment in India?

As per the provisions of NREGA all the people who are able to and in need of work are guaranteed 100 days of employment in a year.

If the government fails to do this, it will give unemployment allowance to people.

NREGA gives preference to the types of jobs that will increase production from land in future.

It promotes decentralization and enables panchayats to plan the jobs and assign them to the deserving workers.

15. What is the main contribution of agriculture to the national economy? Explain any three aspects taken by the government of India to modernize agriculture.

The agriculture sector was still the largest employer even in 2000.

It produces a quarter of the GDP.

In order to increase agricultural production, the government has been encouraging modern methods of farming.

It has built dam, launched irrigation facilities and dug canals to bring more land under cultivation.

In addition, the government has been encouraging farmers to use chemical fertilizers and pesticides to increase yield.

The government has also built better roads in rural areas so that farmers can take their produce to urban markets. It has invested in storage facilities as well.

16. There has been a big change in the three sectors of economic activities in India but a similar shift has not taken place in the share of employment. Explain.

Production in all the three sectors increased over the years; however, there was no proportionate increase in employment opportunities.

In the agricultural sector, for example, the adoption of modern farming methods and the use of chemical fertilizers and pesticides increased yield. However, there was no real increase in the number of jobs. Actually, many jobs were lost due to the adoption of technology. For example, tractors made human labour redundant. Even though the agricultural sector employs more than half of the nation’s population, many of them are underemployed.

Industrial output increased by 9 times during the period from 1973 to 2012, but job opportunities in this sector increased only by three times.

In the tertiary sector, the production of services increased by more than 14 times, but employment opportunities rose by only 5%.

Also, while the secondary and tertiary sector produces more than 3-4th of the products and services, these sectors employ less than half of the total population.

While people working in the primary sector are often underemployed, many people working in the secondary and tertiary sector with assured salaries are often forced to work overtime.

17. How can income and employment be increased if farmers are provided with loans and irrigation facilities?

Farmers need money to buy seeds, fertilizers, agricultural equipment and pump sets to draw water. If they do not have enough money, they cannot raise crops. Hence, many farmers are forced to borrow money from local money lenders at high interest rates. Even if they get a good yield, their profits will be negligible because of the high interest rate on the money borrowed. Now, if the crop fails, the farmer will be pushed into deep debt. By contrast, if they can get a loan from a bank at an affordable interest rate, their profit margin will increase. They will even be able to cultivate larger areas.

Irrigation facilities are also crucial for growing crops. Crops need water. Since, rains are available only during certain months of the year, farmers cannot depend on rain water for irrigating their crops. Good irrigation facilities, on the other hand, will prevent crop loss and also enable the farmers to grow second or even third crops in a year.

Thus, loans and irrigation facilities are crucial for farmers.

18. Disguised unemployment does not help to enhance the productivity of a country. Why?

Disguised unemployment or underemployment is a situation where a number of people are engaged in a job that can be done by fewer persons. This usually happens in the agricultural sector where every member of the family is engaged in farming although the service of one or two family members is sufficient. In this situation, although many people work, there is no real increase in the production. At the same time, it is a waste of valuable human resources.

In urban areas many people who work as hawkers or door-to-door salesmen do not earn enough although they spend the entire day working. Likewise, people employed as mechanics, electricians, plumbers, masons or painters may not have work every day. This also leads to disguised unemployment and does not benefit the economy.

19. Suggest some measures to increase employment opportunities in rural India.

  • Launch skills development programs for the rural youth so that they can find employment.
  • Start agro-based industries.
  • Improve transport and storage facilities in rural areas.
  • Promote rural tourism.
  • Make provision for education and health services in rural areas.
  • Offer cheap credit to rural people so that they can start their own businesses.

20. What is unemployment. Describe any four types of unemployment.

Unemployment is a situation where people aged between 15 and 59 cannot find jobs although they are willing to work at the prevalent wages.

There are mainly four types of unemployment in India.

Seasonal unemployment

This happens when people cannot find work during certain months of the year. People working in the agricultural sector often face this form of unemployment.

Disguised unemployment

In the case of disguised unemployment, people may appear visibly employed but they are actually unemployed. In this situation, more people do a job when the service of fewer people are required.

Open unemployment

This is a situation when a person does not have any job and is clearly visibly unemployed. This is also called visible unemployment.

Educated unemployment

This situation arises when educated people cannot find a job.

Class X Economics Solutions

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