Page 56 - Understanding Economics for Class 10

2. Explain the difference between primary, secondary and tertiary sectors and give examples.
Ans. Primary Sector Secondary Sector Tertiary Sector
When we produce a good by The secondary sector processes Activities that help in the
exploiting natural resources, the raw material supplied development of the primary
Goyal Brothers Prakashan
it is an activity of the primary by primary industries and and secondary sectors comes
sector. prepared them for consumer under tertiary sector. It supports
products. the production process. These
activities, by themselves, do
not produce a good.
Since most of the natural The product is not produced Since these activities generate
products we get are from by nature but has to be made services rather than goods,
agriculture, dairy, fishing, and therefore some process the tertiary sector is also
forestry, this sector is also of manufacturing is essential, called the service sector.
called agriculture and therefore, it is also called as
related sector. manufacturing sector.
Example: agriculture, dairy, Example: Using cotton fibre Example: Information
fishing, forestry, from the plant, we spin yarn technology such as internet
and weave cloth. Using cafe, ATM booths, call
sugarcane as a raw material, centres, software companies
we make sugar or gur.

3. What is GDP? Who is responsible for collecting data for the GDP in India?
Ans. 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.

4. How far is it correct to say that disguised unemployment can also be called underemployment?
Explain.
Ans. (i) It is a situation in which more workers are working in an activity than required. The
people who are actually engaged in such an activity appear to be employed, but are
not fully employed.
(ii) For example, if for the cultivation of one hectare land, 10 workers are required, but instead
of 10 workers, 15 workers are working. In this case, 5 workers are disguised unemployed.
In such cases, even if the surplus workers are removed, the production will not suffer.
(iii) This type of unemployment is basically found in agriculture.
(iv) This type of unemployment can also be called underemployment because workers
perform below their productivity level.

5. What is an organised sector? Explain.
Ans. (i) An organised sector covers those enterprises or places of work where the terms of
employment are regular and therefore, people have assured work.
(ii) 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.
(iii) They are called organised because they have some processes and procedures.
(iv) Besides salary other facilities like medical, paid leaves, overtime are also provided.

E-50 Economics Class X