About This Section

This section collects previous-year Board examination questions (CBSE and State Boards) from Chapter 2 — Sectors of the Indian Economy — with model answers, showing how the chapter is tested.

Board Previous Year Questions

Q1. Distinguish between the organised and unorganised sectors on the basis of any three features. (3 marks)

Answer:

  • Registration & rules: the organised sector is registered and follows laws (Factories Act, Minimum Wages Act); the unorganised sector is largely outside government control and rules are not followed.
  • Job security: organised-sector jobs are secure and regular; unorganised jobs are insecure and irregular.
  • Benefits: organised-sector workers get paid leave, provident fund, gratuity, medical benefits and pension; unorganised workers get no such benefits.

Q2. What is disguised unemployment? How is it different from open unemployment? (3 marks)

Answer: Disguised unemployment (underemployment) is when people appear to be working but work below their potential, so removing some would not reduce output — e.g., too many family members on a small farm. Open unemployment is when a person has no work at all and is clearly visible as jobless. Disguised unemployment is hidden, while open unemployment is visible.

Q3. 'The tertiary sector is becoming increasingly important in India.' Give any three reasons. (3 marks)

Answer: (i) Basic services — a developing country needs the government to provide schools, hospitals, banks, transport, police and defence. (ii) Support to other sectors — as agriculture and industry grow, they demand more transport, trade, storage and banking. (iii) Rising incomes and new services — higher incomes raise demand for services like tourism and private schooling, and new ICT-based services have grown rapidly.

Q4. Explain any five ways in which more employment can be created in rural India. (5 marks)

Answer: (i) Irrigation — build wells, dams and canals so farmers can grow a second crop. (ii) Cheap agricultural credit from banks so poor farmers can buy inputs in time. (iii) Transport and storage and better rural roads to help farmers sell produce. (iv) Agro-based industries in semi-rural areas — dal mills, cold storage, food processing, honey centres. (v) Services and public works — jobs in education, health and tourism, and guaranteed work under laws like MGNREGA 2005 (now Viksit Bharat-GRAMG 2025).

Q5. Why is it important for the public sector to spend on certain activities? Explain with examples. (5 marks)

Answer: The public sector must spend where the private sector will not provide services at a reasonable cost: (i) activities needing huge investment or where charges are hard to collect — roads, bridges, railways, harbours, dams, electricity; (ii) supporting activities — supplying electricity to small industries at affordable rates so they survive, and buying grain at a fair price to sell cheaply through ration shops; and (iii) its primary responsibilities — health, education, safe water, nutrition and care of the poorest regions. These ensure development reaches everyone.