Basis: Nature of activity — the economy is classified into primary, secondary, and tertiary sectors. Example: Agriculture belongs to the primary sector.

This 1-mark question needs just one basis + one valid example. The three main bases from the chapter are: (1) nature of activity → primary/secondary/tertiary, (2) employment conditions → organised/unorganised, (3) ownership → public/private. Any one pair is acceptable. Keep it to a single line.

(B) Whether the activity uses natural resources, manufactures goods, or provides services.

Farming, fishing, and mining use natural resources → Primary sector; manufacturing transforms natural products → Secondary sector. The basis is the nature of the activity.

The textbook explicitly states that primary, secondary, and tertiary sectors are classified on the basis of "nature of activity". Farming, fishing, and mining are primary (natural resource-based); manufacturing is secondary (industrial). Option B best captures this. Examiners expect you to recall the criterion used for this specific classification.

Source: Sectors of Economic Activities, Chapter 2; Let's Recall, Chapter 2.

(i) Primary Sector — A fisherman catches fish directly from the sea, which is a natural resource. Since the activity involves exploiting nature to obtain a natural product, it belongs to the primary sector.

(ii) Secondary Sector — A carpenter uses timber (a natural product) and manufactures furniture through a process of making/crafting. Since a natural product is converted into another form, it is a secondary/industrial sector activity.

(iii) Tertiary Sector — A truck driver transports goods from a factory to a market. This activity does not produce any good but provides a support service to production and trade, so it belongs to the tertiary/service sector.

Source: Sectors of Economic Activities, Chapter 2

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• Examiners want sector name + one clear reason for each part — that's 1 mark each.
• The key logic: Primary = natural resources directly used; Secondary = natural product transformed through manufacturing; Tertiary = services that support primary/secondary (no good produced).
• Don't just name the sector; always link the reason to the defining criterion ("nature of activity").

GDP is the value of all final goods and services produced within a country during a particular year; it shows how big the economy is.

Source: Comparing the Three Sectors, chapter 2

The definition is directly from the textbook. Key terms to include: final goods and services, within a country, and particular year. Examiners look for these three elements in a 1-mark answer. Do not confuse GDP with GVA (GVA adjusts for taxes and subsidies; GDP does not).

(B) ₹80 only

GDP counts only final goods and services. Biscuits (₹80) are the final good. Wheat (₹20) and flour (₹25) are intermediate goods whose value is already included in ₹80, so counting them separately would mean double counting.

Source: Comparing the Three Sectors, Chapter 2

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• The key concept tested is intermediate vs. final goods.
• The textbook uses this exact wheat → flour → biscuit example to explain why only final goods are counted in GDP.
• Wheat and flour are intermediate goods — they are used up in making the final product (biscuits). Their value is already embedded in ₹80.
• Counting all three would result in double counting, which GDP calculation explicitly avoids.
• Remember the definition: GDP = value of all final goods and services produced in a country in a year.

The tertiary sector (service sector) has emerged as the largest producing sector in India, replacing the primary sector in terms of contribution to GDP.

Source: Sectors of the Indian Economy, Chapter 2 — Rising Importance of the Tertiary Sector in Production

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The examiner expects the term "tertiary sector" (also acceptable: "service sector"). The passage explicitly states: "in 2017–18, the tertiary sector has emerged as the largest producing sector in India replacing the primary sector." Do not write "secondary sector" — that is a common mistake. Just naming the sector correctly fetches the full 1 mark.

GDP is the value of all final goods and services produced within a country during a particular year; it shows how big the economy is.

Source: Comparing the Three Sectors, Chapter 2

The examiner expects the exact textbook definition. Key terms to include: final goods and services, within a country, and particular year. Avoid mentioning intermediate goods or GVA — that goes beyond what is asked in 1 mark.

The tertiary sector has become increasingly important in India due to the following reasons:

1. Basic Services: In a developing country like India, the government must provide essential services like hospitals, schools, banks, police, courts, and defence. These form the backbone of the tertiary sector.

1. Growth of Primary and Secondary Sectors: Development of agriculture and industry increases demand for supporting services like transport, trade, and storage, which belong to the tertiary sector.

Source: Sectors of the Indian Economy, Chapter 2 — Rising Importance of the Tertiary Sector in Production

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• The question is worth 2 marks, so two distinct reasons are sufficient — one per mark.
• Always use textbook language: "basic services," "developing country," "transport, trade, storage" are key phrases examiners look for.
• You may alternatively mention rising incomes leading to demand for more services (eating out, tourism, private schools) or new ICT-based services as valid reasons — any two from the four given in the chapter will fetch full marks.
• Avoid mixing up reasons; keep each point clearly distinct.

MGNREGA 2005 Guarantee:
Under the Mahatma Gandhi National Rural Employment Guarantee Act 2005, all rural households whose adult members are able to work and need employment are guaranteed 100 days of employment in a year by the government.

Responsibility for Implementation:
The central government is responsible for implementing this Act. If the government fails to provide employment, it must pay unemployment allowances to the people. The Act gives preference to work that will help increase production from land in the future.

Source: How to Create More Employment?, Chapter 2

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• The examiner expects three clear points for 3 marks: (1) who is covered, (2) the guarantee of 100 days, and (3) the consequence if the government fails (unemployment allowance).
• Avoid writing "MGNREGA" without first expanding the abbreviation — examiners reward use of the full name.
• The phrase "Right to Work" is the key concept here; the Act is called so because it legally guarantees work, not just promises it.

Investment in irrigation facilities helps reduce underemployment in agriculture in the following ways:

1. Additional cropping season: An unirrigated farm can only yield one crop. With irrigation (e.g., a well or canal), farmers like Laxmi can grow a second crop (wheat) in the rabi season, requiring more labour throughout the year.

1. Direct employment generation: One hectare of wheat provides employment to about two people for 50 days. Irrigating two hectares means more family members can be productively employed on the same land.

1. Multiplier effect: When a new dam or canal irrigates many farms, employment rises significantly across the entire agricultural sector, directly reducing underemployment.

Thus, irrigation converts seasonally idle labour into productive employment.

Source: How to Create More Employment?, Chapter 2 – Sectors of the Indian Economy

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• The examiner expects you to use the specific example of Laxmi from the textbook — this shows you have read and understood the passage.
• Key points to hit: (1) second crop/rabi season, (2) quantified employment figures (2 people × 50 days per hectare), (3) large-scale impact via dams/canals.
• Avoid vague statements like "more jobs are created" without explaining the mechanism.
• 3 marks = 3 distinct, developed points. Bullet format is fine and saves time in the exam.

Organised Sector has registered enterprises, follows government rules, and provides workers with job security, fixed working hours, paid leave, provident fund, and other benefits.

Unorganised Sector consists of small, unregistered units that do not follow government regulations. Workers here receive low and irregular wages, have no job security, and get no additional benefits.

Example – Organised: A worker in a government office or a registered factory gets a fixed salary, paid holidays, and provident fund.

Example – Unorganised: A construction labourer or a street vendor earns daily wages with no job security, no paid leave, and is often exploited.

Source: How to Protect Workers in the Unorganised Sector, Chapter 2

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• Examiners expect a clear contrast between the two sectors — job security, registration, benefits, and wages are the key points.
• One valid example for each sector is mandatory for full marks.
• Avoid writing long descriptions; keep the comparison crisp and direct.
• The terms "registered," "job security," and "no benefits" are key scoring phrases.

(a) Kamal belongs to the unorganised sector.

(b) Two features visible in Kamal's situation:

1. No employment security – Kamal can be dismissed by his employer at any time without any reason.
2. No paid leave or holidays – He is not paid for days he does not work, and there is no provision for paid leave or holidays.

(Additional feature seen: No formal appointment letter was given to him at the time of joining.)

Source: Sectors of the Indian Economy, Chapter 2 — Division of Sectors as Organised and Unorganised

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• Part (a) carries 1 mark — a direct one-line answer naming the sector is enough.
• Part (b) carries 2 marks — name two distinct features from the textbook definition of the unorganised sector, and link each to Kamal's situation for full credit.
• Examiners expect textbook-aligned features: no job security, no paid leave, no appointment letter, low and irregular wages, no overtime pay, etc. Pick any two and briefly connect them to the case.
• Avoid writing vague points like "he is poor" — stick to the structural features of the unorganised sector as defined in the chapter.

(a) On the basis of nature of activity: Primary, Secondary, and Tertiary sectors.
(b) On the basis of employment conditions: Organised and Unorganised sectors.

Source: Sectors of the Indian Economy, Chapter 2 (Let's Recall)

This is a direct recall question. The passage explicitly states that "primary, secondary, tertiary" uses nature of activity as the criterion, while "organised/unorganised" uses employment conditions. Examiners expect both parts answered precisely with the correct sector names. No elaboration needed for 1 mark.

(C) Ownership of assets and responsibility for delivery of services

The public and private sectors are classified on the basis of ownership of assets and who is responsible for delivery of services.

The textbook (Chapter 2) explicitly states: "Another way of classifying economic activities could be on the basis of who owns assets and is responsible for the delivery of services." The Exercise Q2(a) also confirms the answer is (iii) ownership of enterprises. Students must not confuse this with the organised/unorganised classification, which is based on employment conditions.

The government takes responsibility for providing certain goods and services because the private sector is guided by the profit motive and will not provide these at a reasonable cost to all citizens.

Reasons:

1. Some projects (roads, dams, bridges) require huge investment that is beyond the capacity of private companies.
2. Collecting fees from thousands of users is difficult; private firms would charge very high rates.
3. Some activities are primary responsibilities of the government — such as health and education — which must be available to everyone, regardless of their ability to pay.

Example: The government builds roads, bridges, and dams, and generates electricity. It supplies electricity to industries at affordable rates so that small-scale industries are not forced to shut down due to high production costs.

Source: Sectors in Terms of Ownership: Public and Private Sectors, Chapter 2

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• The examiner expects three clear reasons (roughly 1 mark each) — this is a 3-mark question.
• Always tie back to the textbook phrases: "profit motive," "large spending beyond private capacity," "primary responsibility of government."
• The example must be specific — vague answers like "many services" will lose marks. Roads/dams/electricity or government purchase of wheat from farmers are the best textbook examples to cite.
• Do not copy the full passage; paraphrase in your own words to show understanding.