Extra Questions of Class 10 Social Science Economics Chapter 2 Sectors of the Indian Economy PDF Download

We have provided you with Extra and Important Questions from Class 10 Social Science Economics Chapter 2 Sectors of the Indian Economy. This Extra and Important Questions will help you to score 100% in your Board Exams. These extra questions will be helpful to revise the important topics and concepts.

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Sectors of the Indian Economy Class 10 Important Questions with Answers Economics Chapter 2

Extra Questions for Class 10 Economics Chapter 2 Very Short Answer Type

Question: What are economic activities?

Answer: The activities which contribute to the flow of goods and services in an economy.

Question: There are many activities that are undertaken by directly using natural resources. What are these activities known as?

Answer: Primary activities.

Question: Give any two examples of primary activities.

Answer: (i) Animal rearing (ii) Lumbering

Question: ‘Dairy is a primary activity’. Give reason.

Answer: In case of dairy we are dependent on the biological process of the animals and availability of fodder. The product i.e. milk is also a natural product.

Question: By what other name the primary sector is known as?

Answer: Agriculture and related sector.

Question: What is secondary sector?

Answer: The secondary sector includes activities in which natural products are changed into other forms manually or through machines.

Question: Why tertiary sector is also termed as service sector?

Answer: Tertiary sector is termed as service sector because tertiary sector provide support service to primary and secondary sectors.

Question: What is GDP? [CBSE 2014]

Answer: It is the value of all final goods and services produced within a country during a particular year.

Question: Which organisation in India undertakes the task of measuring GDP?

Answer: Central Government Ministry.

Question: What are final goods?

Answer: Final goods are the goods which are ready for use. For example a pen.

Question: What are intermediate goods?

Answer: These are the goods which are used up during the production process.

Question: Which sector has shown the highest growth rate?

Answer: Tertiary sector.

Question: Which sector is the largest employer?

Answer: Primary Sector.

Extra Questions for Class 10 Economics Chapter 2 Short Answer Type

Question: What are secondary activities? Explain with examples. [CBSE Sept. 2010]

Answer: The occupations which produce finished goods by using the products of primary activities as raw materials are included in secondary activity. Manufacturing of cloth from cotton, sugar from sugarcane and steel from iron ore are important examples of secondary activities.

All these are secondary activities because the final product is to be produced not by nature but has to be made by men and therefore, some process of manufacturing is essential. Let us take an example of cloth. Though the primary product, i.e., cotton is produced by nature, but it cannot be used directly by us in . this form. So to convert it into usable form some process of manufacturing is essential. This can be done in a factory or at home with simple tools.

Question: What are tertiary activities? Explain with examples. [CBSE Sept. 2010]

Answer: Tertiary activity consists of all service occupations. Transport, communication, trade, health, education and administration are important examples of tertiary activities. These tertiary activities help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good, but they are an aid or a support for the production process. So these are also known as support services.

Question: What are primary activities? Explain with examples. [CBSE Sept. 2010]

Answer: Primary activity includes those occupations which are closely related to man’s natural environment. Gathering, hunting, fishing, lumbering, animal rearing, farming and mining are some of the important examples of primary activities. Let us understand the concept with the help of an example-Animal rearing or dairy is a primary activity. In this activity, farmers are dependent on the biological process of the animals, and the availability of fodder, etc. The product, milk, is also a natural product. The most important feature of primary sector is that it forms the base for all other activities.

Question: What is GDP? Who is responsible for collecting data for the GDP in India? [CBSE Comp. (O) 2008,14]

Answer: GDP is the value of goods and services produced within a country during a given time period.In India, the mammoth task of measuring the GDP is undertaken by a central government ministry. This ministry, with the help of various government departments of all the Indian States and Union Territories, collects information relating to the total volume of goods and services and their prices, and then estimates the GDP.

Question: How can employment opportunities be generated in the tourism and information and technology centres? [CBSE 2013]


  • Government should encourage tourism by providing more facilities to the tourists.
  • Medical treatment in India is very cheap as compared to developed nations.
  • Vocational training should be merged in main-stream education pattern.
  • Research and development work should be promoted.
  • Government should set up more technology parks.

Question: Enumerate the various causes of rural unemployment in India. [CBSE 2013]


  • Lack of skill and education : The most important factor responsible for rural unemployment is lack of education and skill.
  • Domination of primary sector : Most of the people of rural areas are involved in primary activities. The possibility of unemployment in primary sector is more.
  • Lack of Industrialization : Even after more than 60 years of independence more than 80% of the people are dependent on agriculture for their livelihood. Chances of disguised unemployment are very high in agriculture.

Question: Describe any four points of importance of primary sector in the Indian economy. [CBSE 2008 Comp. (D)]


  • Primary sector contributes more than 20% to the GDP of India.
  • Its employment share is more than 55%.
  • It is the most labouring sector of Indian economy.
  • It covers agriculture, dairy, fishing, forestry which all contribute to the Indian economy.

Question: What are the objectives of NREGA 2005? [CBSE Sept. 2010, 2011, 2012]


  • This scheme targets the Scheduled Castes, Scheduled Tribes and the poor women, who suffer from poverty.
  • To provide livelihood to the people below the poverty line, this scheme guarantees 100 days of wage employment in a year to every rural household in the country.
  • Under this scheme, the Gram Panchayat after proper verification will register households, and issue job cards to registered households. The job card is the legal document that entitles a person to ask for work under the Act and to get work within 15 days of the demand for work, failing which an unemployment allowance would be payable.

Question: What is an unorganised sector? Explain.


  • An Unorganised Sector is a sector which is not registered by the government.
  • The unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
  • There are rules and regulations, but these are not followed.

Question: What is an organised sector ? Explain [CBSE 2009 (O)]


  • An organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
  • They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops Act, etc.
  • They are called organised because they have some processes and procedures.

Extra Questions for Class 10 Economics Chapter 2 Long Answer Type

Question: Why is tertiary sector growing so rapidly in India ? Explain it with four reasons. [CBSE Sept. 2011, 14]

Answer: (i) Basic services : In any country, several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc., are required. These can be considered as basic services. In a developing country, the government has to take the responsibility for the provision of these services.As more and more people are being employed to provide the basic services to the people, the share of the tertiary sector in the Gross Domestic Product, the GDR is increasing.

(ii) Development of means of transport and communication : The development of agriculture and industry leads to the development of services such as transport, communication, trade, etc. All these are under the tertiary sector.

(iii) More income more services : The per capita income in our country is rising. As the income level rises, people demand more services like tourism, shopping centres, schools, professional training centres, banks, etc.

(iv) New services : With modernisation and globalisation, some new services based on information and communication technology have become important and essential. The production of these services has been rising rapidly.

Question: How to create more employment in rural areas? Explain with examples. [CBSE Sept. 2011,2012]

Answer: (i) Diversification of agriculture: More than 60 per cent of our workers are employed in agriculture. But ‘our farmers are producing only limited crops. There is need to diversify agriculture. Farmers should be encouraged to adopt pisciculture, horticulture, animal rearing, etc., along with cultivation of crops.

(ii) Cheap credit : Most of the farmers depend on informal sources of credit, i.e., moneylenders, relatives, traders, etc., who charge a very high rate of interest. Government should encourage the commercial banks to provide loans to the farmers at cheaper rates.

(iii) Provision of basic facilities : Our rural areas lack the basic facilities like roads, transportation, banking, warehouses, markets, etc. The government should invest some money in these sectors so that the Indian villages can be linked to other markets. This activity can provide productive . employment to not just farmers, but also to others such as those in services like transport or trade.

(iv) Promotion of local industries and other activities : Another way to tackle this problem is to identify, promote and locate industries, especially the cottage and small- scale industries in semi-rural areas, where a large number of people may be employed. It also includes setting up a flour or rice mill to procure and process these and sell in the cities. In villages, near forest areas, honey collection centres can be started where farmers can come and sell wild honey.

Question: Explain the role of government in the public sector. [CBSE Sept. 2013]

Answer: (i) Development of infrastructure : The pace of industrial development cannot be accelerated without the establishment of infrastructure. Its development requires huge capital investment, which cannot be mobilised by the private sector. Moreover, these projects do not promise high profits.

(ii) Development of backward areas: The goal of achieving a reduction in economic inequality between regions becomes easy to reach, if industries are set up in the backward areas. But the profit seeking private industrialists often are not enthusiastic enough to set up industry in the backward regions. The government, therefore, finds it necessary to start industrial production in these areas on its own.

(iii) Basic facilities : There are a large number of activities which are the primary responsibility of the government. The government must spend on these. Providing health, quality education, particularly elementary education, is the duty of the government. India’s size of illiterate population is one of the largest in the world.

(iv) Other problems : There are many other problems like malnourishment, high infant mortality rate, unsafe drinking water, lack of housing facilities, etc., which need special attention. These problems can be solved only with the help of the government.

Question: Explain how a shift has taken between sectors in developed countries. [CBSE Sept. 2011]


  • At initial stages of development, it was the primary sector which dominated. Most of the people were employed in the primary sector only.
  • With the introduction of new methods of farming and manufacturing people started working in other activities i.e. manufacturing. So secondary sector gradually became the most important in total production and employment.
  • In the past 100 years the service sector has become the most important in terms of total production and employment.
  • The domination of service sector is due to globalisation of the world economy.

Question: “Income and employment will increase if the farmers are provided irrigation and marketing facilities”. Justify the statement.

Answer: (i) If a new dam is constructed and canals are dug to irrigate farms. This could lead to a lot of employment generation within the agricultural sector itself reducing the problem of underemployment.

(ii) With assured means of irrigation production will increase.

(iii) Farmers would like to sell the surplus in the market.

(iv) For this they may be required to transport their products to a nearby town. If the government invests some money in transportation and storage of crops, or makes for better rural roads this activity can provide productive employment to not just farmers but also others such as those in services like transport or trade.

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