Page 55 - Understanding Economics for Class 10

5. The secondary sector is also called industrial sector. Why?
Ans. Since the secondary sector gradually became associated with the different kinds of industries
that came up, it is also called industrial sector.

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6. Why is the tertiary sector also called the service sector?
Ans. Since the activities that fall under the tertiary sector generate services rather than goods, this
sector is also called the service sector. Example teacher, doctor, transport and communication.

7. What does the unorganised sector in the rural areas mostly comprise of?
Ans. In the rural areas, the unorganised sector mostly comprises of landless agricultural labourers,
small and marginal farmers, sharecroppers and artisans such as weavers, carpenters, etc.

8. What does the unorganised sector in the urban areas comprise of?
Ans. In the urban areas, unorganised sector comprises mainly of workers in small-scale industry,
casual workers in construction, trade and transport, etc. and those who work as street vendors,
head load workers, garment makers, etc.

9. What do you mean by Disguised unemployment?
Ans. When more than required number of people are engaged in a work. Removing some of
them will not affect the productivity then it is called as Disguised unemployment.

10. What are economic activities?
Ans. Economic activities encompass all the actions and endeavours conducted by individuals,
businesses, or organisations to produce, distribute, and consume goods and services,
contributing to the overall wealth and functioning of an economy.

11. ‘While calculated Gross Domestic product the value of only final goods should be included’.
Give reason.
Ans. Because the final goods already includes the value of all intermediate goods.

12. Give few examples of public sector industries in India.
Ans. National Thermal Power Corporation (NTPC), Gas Authority of India Limited (GAIL), Coal
India Limited.

v. Short Answer type Questions
1. “Not all of the service sector is growing equally well. Only a part of this sector is growing
in importance.’’ Justify the statement.
Ans. Service sector in India employs many different kinds of people.
At one end, there are a limited number of services that employ highly skilled and educated
workers (their earnings are also growing). At the other end, there are a very large number
of workers engaged in services such as small shopkeepers, repair persons, transport persons,
etc.(their earnings are just enough to earn their living but they don’t have other alternatives).
This shows, not all of the service sector is growing equally well. Only a part of this sector
is growing in importance.

Economics Class X E-49