Consider the following statements regarding the "Organised Sector": 1. It covers those enterprises where the terms of employment are regular. 2. It is defined as any unit that employs more than 50 workers. 3. Firms in this sector are registered by the government and must follow its rules and regulations. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation The economy is classified into organized and unorganized sectors based on the nature of employment conditions and the extent of government regulation. The organized sector is characterized by formal processes, job security, and adherence to labor laws. Statement-wise Analysis: - Statement 1 is Correct: The organized sector encompasses enterprises or places of work where the terms of employment are regular and employees have assured work. Workers in this sector enjoy security of employment and are expected to work only for a fixed number of hours. - Statement 2 is Incorrect: The definition of the organized sector is not strictly tied to a threshold of "more than 50 workers." In the Indian context, it generally includes enterprises employing 10 or more workers (with power) or 20 or more workers (without power), particularly those registered under the Factories Act, 1948. The specific number "50" is not the defining criterion for the sector as a whole. - Statement 3 is Correct: Firms in the organized sector are registered by the government and are legally bound to follow its rules and regulations, such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, and Shops and Establishments Act. Key Takeaway: The organized sector is defined by government registration, compliance with statutory labor laws, and the provision of regular employment terms and social security benefits, distinguishing it from the unorganized sector.

NCERT Class 10 Economics — Chapter 2: Sectors of the Indian Economy

mcqmedium

Consider the following statements regarding the "Organised Sector":

It covers those enterprises where the terms of employment are regular.
It is defined as any unit that employs more than 50 workers.
Firms in this sector are registered by the government and must follow its rules and regulations.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 3 only
B2 only
C1 and 2 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

The economy is classified into organized and unorganized sectors based on the nature of employment conditions and the extent of government regulation. The organized sector is characterized by formal processes, job security, and adherence to labor laws.

Statement-wise Analysis:

Statement 1 is Correct: The organized sector encompasses enterprises or places of work where the terms of employment are regular and employees have assured work. Workers in this sector enjoy security of employment and are expected to work only for a fixed number of hours.
Statement 2 is Incorrect: The definition of the organized sector is not strictly tied to a threshold of "more than 50 workers." In the Indian context, it generally includes enterprises employing 10 or more workers (with power) or 20 or more workers (without power), particularly those registered under the Factories Act, 1948. The specific number "50" is not the defining criterion for the sector as a whole.
Statement 3 is Correct: Firms in the organized sector are registered by the government and are legally bound to follow its rules and regulations, such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, and Shops and Establishments Act.

Key Takeaway:
The organized sector is defined by government registration, compliance with statutory labor laws, and the provision of regular employment terms and social security benefits, distinguishing it from the unorganized sector.

Your note

More from Chapter 2: Sectors of the Indian Economy

Consider the following statements regarding the "Service Sector" growth: 1. New services based on information and communication technology have become important. 2. The entire service sector is growing rapidly, providing high incomes to all workers. 3. All workers in the service sector earn high incomes and enjoy job security. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the "GDP" of India: 1. It shows how big the economy is. 2. It is the sum of the value of intermediate goods produced in the three sectors. 3. It excludes the value of goods and services produced by Indians outside the country. Which of the statements given above is/are correct?

medium

Consider the following statements regarding "Disguised Unemployment": 1. It happens when people are visibly unemployed. 2. It is common in the agricultural sector. 3. Removing a few workers from the sector does not affect total production. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the "Unorganised Sector" workers in urban areas: 1. Workers in small-scale industry are always covered under the organised sector. 2. They include casual workers in construction, trade, and transport. 3. Street vendors are considered part of the formal service sector. Which of the statements given above is/are correct?

easy

Consider the following statements regarding the "Primary Sector": 1. It forms the base for all other products. 2. It is unrelated to agriculture and allied activities. 3. It includes activities like mining and forestry. Which of the statements given above is/are correct?

easy

Keep practising Chapter 2: Sectors of the Indian Economy

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The correct option is 1 and 3 only.

Explanation

Statement-wise Analysis:

Statement 1 is Correct: The organized sector encompasses enterprises or places of work where the terms of employment are regular and employees have assured work. Workers in this sector enjoy security of employment and are expected to work only for a fixed number of hours.
Statement 2 is Incorrect: The definition of the organized sector is not strictly tied to a threshold of "more than 50 workers." In the Indian context, it generally includes enterprises employing 10 or more workers (with power) or 20 or more workers (without power), particularly those registered under the Factories Act, 1948. The specific number "50" is not the defining criterion for the sector as a whole.
Statement 3 is Correct: Firms in the organized sector are registered by the government and are legally bound to follow its rules and regulations, such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, and Shops and Establishments Act.