CLASS X ECONOMICS CHAPTER 2 SECTORS OF INDIAN ECONOMY

1.Which are the three sectors of economy?

•  Primary
•  Secondary
•  Tertiary

2. What do you mean by the PRIMARY SECTOR?

  It is the sector in which people are engaged in
 those activities that are  undertaken by directly using
 natural resources

Example : the cultivation of cotton. It takes place

within a crop season. For the growth of the cotton

 plant, we depend mainly, but not entirely,

on natural factors like rainfall, sunshine and
climate. The product of this activity, cotton, is a
natural product.this sector is also called agriculture
and related sector

3. Why is the primary sector also called as agriculture

and related sector?

 Primary sector also called as  agriculture and related
sector because most of the natural products we get are
 from agriculture, dairy, fishing, forestry

4. Why is primary sectorcalled so ?

       This is because it forms the base for all other

 products that we subsequently make

5. Define secondary sector

    Secondary sector is the sector in which people
are engaged in 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 cotton fibre from the plant,

we spin yarn and weave cloth

6. Why secondary sector also called as industrial sector?

   Since the secondary sector gradually became associated
 with the different kinds of industries that came up, it is
 also called as industrial sector.

7. Define tertiary sector

       These are activities that help in the development

of the primary and secondary sectors. These activities,

 by themselves, do not produce a good but they are an aid 

or a 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. Transport,

storage, communication, banking, trade are some

 examples of tertiary activities

8. Why Tertiary sector also called as service sector?

       The activities of the tertiary sector generate services

       rather than goods; therefore this sector is also called

       the service sector. Service sector also includes some

        essential services that may not directlyhelp in the

        production of goods.

9. Why are only ‘final goods and services’ counted while
 computing the total production ?

       Only ‘final goods and services’ counted while computing
       the total production because Intermediate goods are
        used up in producing final goods and services.
        The value of final goods already includes the value of

       all the intermediate goods that are used in making
       the final good

10 What do you understand by  GDP of a country ?

      The value of final goods and services produced in each sector

     during a particular year provides the total production of the

     sector for that year And the sum of production in the three

     sectors gives what is called the Gross Domestic Product

  (GDP) of a country. It is the value of all final goods and 

   services produced      within a country during a particular year.

11 Who undertakes the task of estimating GDP in India  ?

  In India, the mammoth task of measuring 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 total volume of goods and

 services and their prices and then estimates the GDP.

12.Describe the general pattern of change seen in various

sectors of  economy in most of the developed countries

1. In the initial stages of development, primary sector was

the most important sector of economic activity.

As the methods of farming changed and agriculture

 sector began to prosper, it produced much more

 food than before. Many people  were able to  take up

 other activities. At this stage, most of the goods

  produced were natural products  from the 

primary sector and most people were also employed

 in this sector.

2.   Over a long time (more than hundred years), and

especially because  new  methods of  manufacturing

were introduced, factories came up  and started 

expanding. Those people who had earlier worked

on farms  now began to work in factories

in large numbers. People began to use many

 more goods that were produced in factories

 at cheap rates. Secondary sector gradually became the

most important in total production and employment.

Hence, over time, a shift had taken place. This means

 that the importance of the sectors got  changed.

3  In the past 100 years, there has been a further shift

 from secondary to tertiary sector  in developed countries.

The service  sector has become the most important

 in terms of total production.Most of the working

people are also employed in the service sector.

13 Give reasons for the Rising Importance of the Tertiary
Sector in Production

     1. In any country several services such as hospitals,

educational institutions, post and telegraph services,

 police stations, courts,  etc. are required. These can be

 considered as basic services.In a developing country

 the government has to take responsibility for the provision

of these services.

2       Second, the development of agriculture and

 industry has  led to demand of more services such as

 transport, trade, storage  etc

3       Demand for more specified services such as  eating out,
       tourism, shopping, private hospitals,private schools,
         professional training etc

     4. Over the past decade certain new services such as those

          based on information and communication technology have

           become important and essential. The production of these

            services has been rising rapidly.