Questions with Short Answers for Class 10 CBSE (Economics – Short Answer Type):
Q1. Give a few examples of public sector activities and explain why the government has taken them up.
Ans: Railways, Post and Telegraph, Defence, Energy, Health, and Education are public sector activities. The government has taken them up because they require huge investment, involve public welfare, and are necessary for national security and economic development.
Q2. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Ans: Yes, workers are exploited in the unorganised sector. They often face low wages, job insecurity, no fixed working hours, no medical or retirement benefits, and lack of legal protection.
Q3. State a reason why intermediate goods are not considered in the value of final goods.
Ans: Intermediate goods are excluded because their value is already included in the value of final goods. Counting them again would lead to double counting.
Q4. How would income and employment increase if farmers were provided with irrigation and marketing facilities?
Ans: With irrigation, farmers can grow more crops throughout the year, and marketing facilities ensure fair prices for their produce. This increases agricultural production, raises income, and creates more employment opportunities.
Q5. Explain the working procedure of the Unorganised Sector.
Ans: In the unorganised sector, jobs are not secure, workers are paid irregularly and less, there are no fixed working hours, and social security benefits like pensions, health care, or paid leave are absent. Work is often seasonal and not regulated by the government.
Q6. Distinguish between open unemployment and disguised unemployment.
Ans:
- Open Unemployment: When people are willing to work at the prevailing wage rate but cannot find any job.
- Disguised Unemployment: When more people are employed than required for a job, and extra workers have no contribution to output.
Question Bank – Long Answer Questions with Answers for Class 10 CBSE (Economics: Sectors of the Indian Economy):
Q1. Explain the difference between primary, secondary and tertiary sectors using examples.
Answer:
- Primary Sector: It includes activities that directly use natural resources. Example: agriculture, fishing, forestry, mining.
- Secondary Sector: It includes manufacturing activities where natural products are converted into new forms. Example: cotton → cloth, sugarcane → sugar.
- Tertiary Sector: It includes services that support production and trade. Example: transport, banking, education, communication.
Thus, the primary sector forms the base, the secondary sector adds value, and the tertiary sector provides services to both.
Q2. Students in a school are often classified into primary and secondary or junior and senior. What is the criterion that is used? Do you think this is a useful classification? Discuss.
Answer:
- The criterion used is age and class level. Younger children are grouped as primary/junior students and older ones as secondary/senior students.
- This classification is useful because:
- Teaching methods and subjects can be adapted to the students’ age.
- It helps in proper resource allocation, such as separate teachers for different levels.
- Evaluation can be done more effectively.
- Similarly, in the economy, classification into primary, secondary and tertiary sectors helps in analyzing employment, GDP contribution and planning for growth.
Q3. Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Answer:
- In developed countries, the primary sector declined and both the secondary and tertiary sectors grew, especially industries.
- In India, the primary sector’s share declined, but the tertiary sector grew much faster than the secondary sector.
- Desired change not happening:
- India expected a large growth in the secondary sector (industries) to provide employment to the large labour force.
- Instead, service sector grew more, while industry did not absorb enough workers.
- Thus, India skipped the manufacturing boom that most developed nations experienced.
Q4. Justify the statement that “Income and employment will increase if farmers are provided irrigation and marketing facilities”.
Answer:
- Irrigation allows farmers to grow multiple crops and reduces dependency on monsoons.
- Marketing facilities ensure that farmers get fair prices and reduce exploitation by middlemen.
- With better infrastructure, more jobs are created in allied activities like food processing, storage, and transport.
- This increases production, income, and employment in both rural and urban areas.
- Therefore, investment in irrigation and marketing leads to overall rural development and poverty reduction.
Q5. Explain how public sector contributes to the economic development of a nation.
Answer:
- Provides Infrastructure: Public sector builds roads, railways, electricity, water supply – essential for growth.
- Generates Employment: Large public enterprises provide direct and indirect jobs.
- Ensures Social Justice: Public sector invests in health, education, and poverty reduction.
- Protects National Interest: Defence, atomic energy, and space research are managed by the government.
- Reduces Inequality: Public sector provides affordable goods and services, ensuring welfare of weaker sections.
Thus, the public sector is vital for balanced and inclusive economic development.
Q6. 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.
Answer:
- Employment and GDP are important because they measure:
- How much each sector contributes to the economy.
- How many people get livelihood from them.
- For example:
- Primary sector employs the largest population but contributes less to GDP.
- Tertiary sector contributes more to GDP but employs fewer people.
- Other issues to examine:
- Working conditions (job security, wages, safety).
- Sustainability of resources (avoiding overuse of land, water, forests).
- Equal opportunities for men and women.
- Regional development and reduction of inequalities.
Hence, apart from employment and GDP, social justice, environment, and quality of life must also be examined.

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