Page 28 - Understanding Economics for Class 10

 Storage- Some goods are need to be stored for sometime. For example- wheat, rice
is stored in godowns.
 Banking- It helps in providing loans for production and trade.
 Communication- Talking on phone, sending letters, e-mail are part of communication.
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 Teachers, doctors, and those who provide personal services such as washermen, barbers,
cobblers, lawyers, and people to do administrative and accounting works. These services
may directly not help in the production of goods but are essential services.
 Information technology such as internet cafe, ATM booths, call centers, software companies
etc. are the examples of new services that have become important in recent times.
 Since these activities generate services rather than goods, the tertiary sector is also called
the service sector.
Although, Economic activities are classified into three different categories, but they are highly
interdependent. Example of Economics Activities.

Let’s Work these out (Page No. 21)
1. Complete the table to show how sectors are dependent on each other.
Ans. Example What does this show?
Imagine what would happen if farmers refuse This is an example of the secondary or
to sell sugarcane to a particular sugar mill. industrial sector being dependent on the
The mill will have to shut down. primary.
Imagine what would happen to cotton This shows primary sector being dependent
cultivation if companies decide not to buy on secondary sector.
from the Indian market and import all cotton
they need from other countries. Indian cotton
cultivation will become less profitable and
the farmers may even go bankrupt, if they
cannot quickly switch to other crops. Cotton
prices will fall.
Farmers buy many goods such as tractors, This shows changes in prices of industrial
pumpsets, electricity, pesticides and fertilisers. goods affect profits of primary sector,
Imagine what would happen if the price hence shows primary sector’s dependence
of fertilisers or pumpsets go up. Cost of on secondary sector.
cultivation of the farmers will rise and their
profits will be reduced.
People working in industrial and service Strike by transporters show how primary
sectors need food. Imagine what would and secondary sectors are dependent on
happen if there is a strike by transporters and tertiary sector.
lorries refuse to take vegetables, milk, etc.
from rural areas. Food will become scarce in
urban areas whereas farmers will be unable
to sell their products.

2. Explain the difference between primary, secondary and tertiary sectors using examples
other than those mentioned in the text.
Ans. Farmer grows wheat and sells it to a wheat flour making company. This company sells it
to retail shops and then it is purchased by a restaurant owner where chef cooks chapatis

E-22 Economics Class X