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Class 10 Sectors of The Indian Economy Important Questions and Answers:
Q1.Which of the following sector does not come under the service sector in India?
Options
(a) Transport
(b) Agriculture
(c) Real estate
(d) Restaurants
Ans.(b)
Explanation
The service sector, also known as the tertiary sector, is the third tier in the three-sector economy.
Instead of product production, this sector produces services maintenance and repairs, training, or
consulting. The primary activities comprise those occupations that seem to be closely associated
with the man's natural environment. Agriculture,gathering, animal rearing, pastoral, farming,
fishing and hunting are significant examples of primary activities.
Q2.Activities that help in the development of Primary and Secondary sectors come under which
one of the following sectors?
Options
(a) Primary
(b) Secondary
(c) Tertiary
(d) Quaternary
Ans.(c)
Explanation
After primary and secondary, there is a third category of activities that falls under the tertiary sector
and is different from the above two. These are activities that help in the development of the primary
and secondary sectors.
Q3.How do we count various goods and services for calculating Gross Domestic Product (G.D.P.)
of a country? Explain with examples.
Explanation
Gross Domestic Product (GDP) is the market value of the final goods and services produced during
a year within the domestic territory of a country. While calculating GDP, final goods and services
are counted to avoid the problem of double counting.
For e.g. a farmer sold wheat to a flour mill for ₹10 per kg. The mill grinds the wheat and sells the
flour to a biscuit company for ₹12 per kg. The biscuit company uses the flour, sugar and butter to
make 5 biscuit packets. It sells the biscuit to the consumer at ₹15 per biscuit packet. Here biscuits
are the final goods that are purchased by the consumer. Wheat and wheat flour are the intermediate
goods used in the production of final goods. The value of ₹15 already includes the value of flour
₹12. Hence, only the value of final goods and services are included in GDP.
Q4.Why is the organised sector preferred by the employees ? Explain.
Explanation
The organised sector preferred by the employees because of following reason :
(i) It will provide job security for all employees and even a certain amount of money is kept apart
from the salary every year to pay the lump-sum amount to the employees after retirement.
(ii) It covers those enterprises or places of work where the terms of employment are regular and
therefore, people have assured work.
(iii) 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, the Minimum Wages Act, the Payment of Gratuity
Act, Shops Act, etc.
Q5.What is the basic reason for change in the economic structure?

Explanation
It has been observed from the histories of many developed countries, that at their initial stages of
development, the primary sector was the most important sector of economic activity in terms of
production as well as employment. As the methods of farming improved and the agriculture sector
began to prosper, it started producing much more food than before which is called surplus. This
helped many people to think of and take up activities other than agriculture. Hence, an increasing
number of craft-persons and traders began to emerge. Trading activities increased by leaps and
bounds. These other activities were manufacturing and service. So for a long time, due to the
prominence of the primary sector in production, it used to be the main sector of employment. But
as the activities in the secondary sector started expanding, new production units were set up in this
sector. Hence, the people who had earlier worked in the primary sector now started to work in
factories in large numbers. Secondary sector gradually started becoming the most important sector
in terms of total production and employment. Hence, over time, a shift had taken place, i.e., the
importance of the sectors had changed their places. Thereafter, a further shift from secondary to
tertiary sector began to take place in developed countries. The service sector includes the services.
Most of the people are now employed in the service sector. Though this is the general pattern
observed in developed countries, yet developing countries like India have also followed the similar
pattern.

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Class 10 Sectors of The Indian Economy Important Questions and Answers:

Q5.What is the basic reason for change in the economic structure?

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