Page 59 - Understanding Economics for Class 10

(ii) They work only for a fixed number of hours. If they work more, they have to be paid
overtime by the employer.
(iii) They also get several other benefits from the employers like paid leave, payment during
holidays, provident fund, gratuity, etc.
(iv) They also get medical benefits and, under the laws, the factory manager has to ensure
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facilities like drinking water and a safe working environment.
3. How are the three sectors of the economy interdependent. Explain using an example.
Ans. There are three sectors:
(i) Primary Sector: Activities under primary sector are undertaken by directly using natural
resources. In other words, when we produce a good by exploiting natural resources,
it is an activity of the primary sector. It forms the base for all other products that we
subsequently make. For example, agriculture, dairy, forestry, fishing, mining, etc.
(ii) Secondary Sector: This sector covers activities in which natural products are changed into
other forms through ways of manufacturing that we associate with industrial activity. It is
the next step after primary. The product is not produced by nature but has to be made and
therefore some process of manufacturing is essential. This could be in a factory, a workshop
or at home. For example, using sugarcane as a raw material, we make sugar or gur.
(iii) Tertiary Sector: The activities that help in the development of the primary and secondary
sectors come under the tertiary sector. These activities, by themselves, do not produce a
good but they are an aid or support for the production process. For example, transport,
banking, insurance, internet cafe, etc.
Economic activities, though, are grouped into three different categories, are highly
interdependent.
Let’s take an example-Cultivation of sugarcane is an agricultural activity which comes
under the primary sector. Raw materials from the primary sector are changed into
processed goods through ways of manufacturing in the secondary sector.
Using sugarcane as a raw material, we make sugar or gur in a factory. This sugar and gur
would need to be transported by trucks, etc. and then sold in wholesale and retail shops. Thus,
transport is an example of tertiary activity. It provides necessary service to make things available
for consumers. So, we can say that these three sectors of the economy are interdependent.
4. Income and employment will increase if the farmers are provided irrigation and marketing
facilities”. Justify the statement.
Ans. (i) If a new dam is constructed and canals are dug to irrigate farms. This could lead to a
lot of employment generation within the agricultural sector itself reducing the problem
of underemployment.
(ii) With assured means of irrigation production will increase.
(iii) Farmers would like to sell the surplus in the market.
(iv) For this they may be required to transport their products to a nearby town. If the
government invests some money in transportation and storage of crops, or makes for
better rural roads this activity can provide productive employment to not just farmers
but also others such as those in services like transport or trade.

5. Explain how a shift has taken between sectors in developed countries.
Ans. (i) At initial stages of development, it was the primary sector which dominated. Most of
the people were employed in the primary sector only.
(ii) With the introduction of new methods of farming and manufacturing people started
working in other activities i.e. manufacturing. So, secondary sector gradually became
the most important in total production and employment.
(iii) In the past 100 years the service sector has become the most important in terms of
total production and employment.
(iv) The domination of service sector is due to globalisation of the world economy.
Economics Class X E-53