Page 46 - Understanding Economics for Class 10

6. Do you think the classification of economic activities into primary, secondary and tertiary is
useful? Explain how.
Ans. Yes, this type of classification is important because:
(i) It provides information about how and in what kind of activities people are employed in a country.
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(ii) It helps in understanding about which sector is contributing most to the GDP of the country.
(iii) It helps in getting information about which sector is absorbing most of the working population
(employment opportunities) of the country.
(iv) It helps in knowing which sector is expanding and which is lagging behind.
(v) Government takes necessary measures to promote the sector which is lagging behind, So
rectification is possible due to classification.
(vi) This classification also helps in knowing that all the three sectors are not independent, they
are interdependent.

7. For each of the sectors that we came across in this chapter why should one focus on employment
and GDP? Could there be other issues which should be examined? Discuss.
Ans. Employment and GDP are two of the most important factors in the development of a country.
Employment and GDP are used to calculate the overall productivity and National income of
a country. If a country has a high employment rate, its GDP, National Income and per capita
income will automatically increase. Hence, these are the two things which have been given
major emphasis in this chapter. Other issues which should be examined are as follows:
 Health care facilities  Education  Poverty
 Food Production  Nourishment

8. Make a long list of all kinds of work that you find adults around you doing for a living. In
what way can you classify them? Explain your choice.
Ans. The activities performed by human beings for a living are classified into three sectors: primary,
secondary and tertiary. When we see people around us, we can classify their employment
sector in either of the three classifications. Activities like farming and mining are examples of
the primary sector. Manufacturing of goods is an example of the secondary sector. Teaching,
banking, transportation, insurance, doctor are all examples of the tertiary sector.

9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Ans. The activities that help in the development of the primary and secondary sectors are called
tertiary activities. These activities are different from the primary and secondary sector activities.
These activities, by themselves, do not produce a good but they are an aid or support for the
production process. For example, goods that are produced in the primary or secondary sector
would need to be transported by trucks or trains and then sold in wholesale and retail shops.
These transportation facilities and shopkeepers come under the tertiary sector. They do not
produce goods but play a very important role in selling and bringing those goods to the market.

10. What do you understand by disguised unemployment? Explain with an example each from the
urban and rural areas.
Ans. When in an activity more than required persons are engaged and taking few of them out will
not affect the overall production. In this situation people are apparently working but all of
them are made to work less than their potential is called disguised unemployment.
In rural areas, where agriculture is the main source of income, this kind of unemployment can be
seen often. If a piece of land requires only three people to work on it and instead five people are
working on it, then the two extra people are said to be in a situation of disguised unemployment.
In urban areas, disguised unemployment is seen when painters, plumbers, electricians are unable
to find work on a daily basis and work way less than their potential.

E-40 Economics Class X