Sectors of Indian Economy Class 10 MCQ Questions With Answers
Question 1.
Which of the following profession belongs to the Tertiary sector of economy?
(A) Fisherman
(B) Farmer
(C) Factory worker
(D) Teacher
Answer:
(D) Teacher
Explanation:
Tertiary jobs involve providing a I service, hence teaching falls in tertiary sector.
Question 2.
Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of the following statements about this sector is correct?
(A) There are govt, bodies to supervise informal sector
(B) Money lenders ask for a reasonable rate of interest
(C) Cost of informal loans to the borrower is quite high
(D) Money lenders use fair means to get their money back.
Answer:
(C) Cost of informal loans to the borrower is quite high
Explanation:
It is because the lender in the informal sector give more money, without any collateral. In the informal sector the lender asks for a huge interest which the borrower is unable to sometimes pay back eventually falls into debt trap.
Question 3.
Production of a commodity, mostly through the natural process, is an activity in…….. sector.
(A) primary
(B) secondary
(C) tertiary
(D) information technology
Answer:
(A) primary
Explanation:
Primary activity includes those occupations which are closely related to man’s natural environment.
Question 4.
GDP is the total value of……… produced during a particular year.
(A) all goods and services
(B) all final goods and services
(C) all intermediate goods and services
(D) all intermediate and final goods and services
Answer:
(B) all final goods and services
Explanation:
GDP represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year).
Question 5.
In terms of GDP the share of tertiary sector in 2013-14 is:
(A) between 20 to 30 percent
(B) between 30 to 40 percent
(C) between 50 to 60 percent
(D) between 60 to 70 percent
Answer:
(D) between 60 to 70 percent
Question 6.
Economic Survey is published by the:
(A) National Sample Survey Organisation
(B) Ministry of Statistics and Planning
(C) Ministry of Finance
(D) Ministry of Commerce and Trade
Answer:
(C) Ministry of Finance
Explanation:
The Economic Survey published by the Ministry of Finance presents a review of how the Indian economy performed in the financial year, features the performance of major development programmes and highlights the policy initiatives of the government.
Question 7.
The sector which has emerged as the largest producing sector in India is:
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) None of the above
Answer:
(C) Tertiary sector
Explanation:
This has happened because the demand for Tertiary sector activities like transport, storage and trade have increased substantially with the development of the Primary and Secondary sectors.
Question 8.
In our country, NREGA 2005 aims to provide to all those who are able to, and are willing to work, a minimum of
(A) 200 days of employment in a year.
(B) 100 days of employment in a year.
(C) 300 days of employment in a year.
(D) 365 days of employment in a year.
Answer:
(B) 100 days of employment in a year.
Explanation:
The mandate of the MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. This Act is an important step towards the realization of the right to work.
Question 9.
The sectors are classified into Public and Private sector on the basis of
(A) employment conditions
(B) the nature of economic activity
(C) ownership of enterprises
(D) number of workers employed in the enterprise
Answer:
(C) ownership of enterprises
Question 10.
Which sector of economy is the largest employer?
(A) Industrial sector
(B) Agriculture sector
(C) Primary sector
(D) None of the above
Answer:
(C) Primary sector
Explanation:
More than half of the workers in the country are working in the primary, mainly in agriculture, producing only a quarter of the GDP
Question 11.
Which one of the following occupations suffers from underemployment?
(A) Teacher
(B) Casual labour
(C) Bank employee
(D) Police constable
Explanation:
Casual labour suffers from under employment because sometimes the supply of labourers is greater than its demand.
Question 12.
| Column-I | Column-II |
| (i) Organised sector | (A) Railways |
| (ii) Public sector | (B) Tata Iron and Steel Company Limited |
| (iii) Private sector | (C) Agriculture and farming |
| (iv) Primary sector | (D) Job security |
(A) (i)-(D), (ii)-(A), (iii) -(B), (iv)-(C)
(B) (i)-(D), (ii)-(C), (iii)-(A), (iv)-(B)
(C) (i)-(C), (ii)-(A),(iii)-(B), (iv)-(D)
(D) (i) -(B), (ii)-(c ), (iii)-(D), (iv)-(A)
Answer:
(A) (i)-(D), (ii)-(A), (iii) -(B), (iv)-(C)
Explanation:
In terms of operations, the Indian economy is divided into organized and unorganized. While for ownership, it is divided into the public sector and the private sector.
Question 13
| Column ‘A’ | Column ‘B’ |
| (i) Primary Sector | (A) Service Sector |
| (ii) Tertiary Sector | (B) Industrial Sector |
| (iii) Secondary Sector | (C) Unorganised Sector |
| (iv) Small and scat-tered units | (D) Agriculture and related sector |
(A) (i)-(C), (ii)-(D), (iii)-(A),(iv)-(B)
(B) (i)-(D), (ii)-(A), (iii)-(B), (iv)-(C)
(C) (i)-(C), (ii)-(A), (iii)-(B), (iv)-(D)
(D) (i)-(D), (ii)-(C), (iii)-(A),(iv)-(B)
Answer:
Option (B) is correct.
Explanation: They are three sectors in the Indian economy- primary economy, secondary economy, and tertiary economy. The various production activities in the primary, secondary and tertiary sectors produce a very large number of goods and services. All the three sectors are interdependent on each other.
Question 14.
Arrange the following in the correct sequence:
(i) Transporting cloth to the workshops
(ii) Sale in shops and showrooms
(iii) Spinning the yarn
(iv) Weaving of the fabric
Options:
(A) (i) – (iv) – (iii) – (ii)
(B) (iii) – (iv) – (i) – (ii)
(C) (iv) – (i) – (ii) – (iii)
(D) (iii) – (iv) – (ii) – (i)
Answer:
(B) (iii) – (iv) – (i) – (ii)
Explanation:
These activities contribute to the 5 textile industry which is categorized under the secondary sector. ‘I Once the raw materials are received, the process of spinning starts to convert it into varn which is the predecessor of the fabric to be created.The fibres could be natural or man-made.
Question 15.
Arrange the following in the correct sequence:
(i) Harvesting the crop
(ii) Selling the surplus production in the market
(iii) Sowing the seeds in the soil
(iv) Cultivating the soil Options:
(A) (iii) – (i) – (ii) – (iv)
(B) (i) – (ii) – (iii) – (iv) ‘
(C) (iv) – (iii) – (ii) – (i)
(D) (iii) – (iv) – (i) – (ii)
Answer:
(D) (iii) – (iv) – (i) – (ii)
Explanation:
These activities contribute to the agriculture sector which is categorized under the primary sector of the economy.
Question 16.
Arrange the following in the correct sequence:
(i) Transporting flowers to the vendors.
(ii) Plucking flowers from the plants
(iii) Selling garlands at the shops
(iv) Making garlands with flowers
Options:
(A) (ii) – (iv) – (i) – (iii)
(B) (ii) – (i) – (iv) – (iii)
(C) (i) – (ii) – (iii) – (iv)
(D) (iii) – (i) – (ii) – (iv)
Answer:
(B) (ii) – (i) – (iv) – (iii)
Explanation:
These activities belong to horticulture industry. The horticulture industry embraces the production, processing and shipping of and the market for fruits and vegetables. It is part of agriculture which falls under primary sector.
Question 17.
Analyze the information given below, considering one of the following correct options: Sushila is a worker in garment export industry of Agra. She gets facilities like health insurance provident fund, overtime at a double rate, medical leave, etc. She is working in :
(A) Tertiary sector
(B) Organised sector
(C) Unorganised sector
(D) None of the above
Answer:
(B) Organised sector
Explanation:
Sushila is employed in an organised sector where she works under fixed terms of employment and cannot he terminated in a casual manner without notice.
Question 18.
Analyze the information given below, considering one of the following correct options: There are many activities that are undertaken by directly using natural resources. For example, the cultivation of cotton beekeeping, dairy farming, etc.
(A) Tertiary sector
(B) Private sector
(C) Secondary sector
(D) Primary sector
Answer:
(D) Primary sector
Explanation:
The primary sector of the economy includes any industry involved in ; the extraction and prod uction of raw materials, such as farming, logging, hunting, fishing, and V mining.
Question 19.
Analyze the information given below, considering one of the following correct options: Laxmi, owning about three hectares of unirrigated land dependent only on rain and growing crops like jowar and arhar. All seven members of her family work in the field throughout the year. You will see that everyone is working, none remains idle, but in actual fact their labour effort gets divided. Each one is doing some work but no one is fully employed.
(A) Underemployment
(B) Disguised unemployment
(C) Seasonal unemployment
(D) Both (A) and (B).
Answer:
(D) Both (A) and (B).
Question 20.
Analyze the information given below, considering one of the following correct options: Kamal works in rice mill. Jobs here are low-paid and often not regular. There is no provision for overtime paid leave holidays, etc. Employment is not secure. People can be asked to leave without any reason.
(A) Organised sector
(B) Private sector
(C) Unorganized sector
(D) Joint sector
Answer:
(C) Unorganized sector
Explanation:
Unorganised sector is one where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.
Question 21.
Rakesh works in a automobile unit in Gurugram. But he does not get any facility like health insurance, medical leave provident fund, gratuity, etc.
(A) Public sector
(B) Organised sector
(C) Private sector
(D) Unorganised sector
Answer:
(D) Unorganised sector
Explanation:
Rakesh’s works in an unorganised sector wherein his employment is not secure , he is generally low paid and is not regularly paid. His employers do not make provision for overtime payment, paid leaves or holidays, medical facilities, gratuity and provident fund.
Question 22.
Choose the incorrect option from the following :
| List-I | List-II |
| (A) Courier | (i) Tertiary Sector |
| (B) Fisherman | (ii) Primary Sector |
| (C) Carpenter | (iii) Primary Sector |
| (D) Banker | (iv) Tertiary Sector |
Answer:
Option (C) is correct.
Explanation:
Since carpenters use woods or timber as the main raw materials(provided by the timber industry which belongs to primary sector) to produce or manufacture furniture and other wooden structures, it falls in primary sector.
Question 23.
Find the incorrect option from the following:
(A) Secondary sector provides employment to a large number of people.
(B) Secondary sector is also called the service sector.
(C) Secondary sector uses mechanical power and modern use of labour.
(D) Secondary sector produces goods for local and international consumers.
Answer:
(B) Secondary sector is also called the service sector.
Explanation:
Secondary sector is also called industrial because the secondary sector is mostly associated with industries.
Question 24.
Find the incorrect option from the following:
(A) MGNREGA has been implemented in 625 districts of India
(B) MGNREGA guarantees 200 days of assured work to the people who are able and in need of work
(C) If the government fails to provide unemployment allowances to the people.
(D) One third of the jobs are reserved for women.
Answer:
(B) MGNREGA guarantees 200 days of assured work to the people who are able and in need of work
Question 25.
Find the incorrect option from the following:
(A) Underemployment means more people engaged in a job than needed.
(B) Underemployment is found only in agricultural sector
(C) Underemployment is also called disguised unemployment.
(D) Underemployment is also found in other sectors.
Answer:
(B) Underemployment is found only in agricultural sector
Explanation:
Population pressure, landlessness, environmental constraints, and technological changes in agriculture are some of the causes of underemployment in agriculture.
Assertion and Reason Based MCQs
Directions: In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as. [U]
(A) Both A and R are true and R is the correct explanation of A.
(B) Both A and R are true but R is NOT the correct explanation of A.
(C) A is true but R is false.
(D) A is false and R is true.
Question 1.
Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector.
Reason (R): The value of final goods already includes the value of all the intermediate goods.
Answer:
(A) Both A and R are true and R is the correct explanation of A.
Explanation:
The value of final goods already includes the value of all intermediate goods that are being used in the process of producing the final good, e.g. a farmer sold wheat to a flourmill for Rs. 10 per kg. The mill grinds the wheat and sold the flour to a biscuit company for Rs. 12 per kg.
Question 2.
Assertion (A): Under MGNREGA 2005, those who are able to, and are in need to work in rural areas are guaranteed 100 days of employment in a year.
Reason (R): The Central government in India made a law implementing the Right to work in about 625 districts of India.
Answer:
(A) Both A and R are true and R is the correct explanation of A.
Question 3.
Assertion (A): Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.
Reason (R): All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.
Answer:
(C) A is true but R is false.
Explanation:
In India, not the entire service sector is growing equally well. Service sector in India employs many different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.
Question 4.
Assertion (A): The development of agriculture and industry leads to the development of service sector.
Reason (R): As the primary and secondary sectors develops, the demand for transport, storage structures, banks, insurance, etc., increases.
Answer:
(A) Both A and R are true and R is the correct explanation of A.
Question 5.
Assertion (A): In India, over the forty years between 1973-74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
Reason (R): Tertiary sector is the only organized sector in the economy so the government spends a lot of money for creating jobs in tertiary sector.
Answer:
(C) A is true but R is false.
Explanation: There are several reasons for increased production in tertiary sector such as increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.
Question 6.
Assertion (A): Reliance industries is a privately- owned firm.
Reason (R): Government is a major stakeholder is reliance industries.
Answer:
(C) A is true but R is false.
Explanation:
Reliance industry is a privately- owned firm as the assets and delivery of goods and services in Reliance is controlled by private individuals.
Case-Based MCQs
I. Read the extract given below and answer the questions that follows:
There are many activities that are undertaken by directly using natural resources. When we produce a good by exploiting natural resources, it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers 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. After Primary and Secondary, there is a third category of activities that falls under Tertiary sector and is different from the above two. 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.
The various production activities in the Primary, Secondary and Tertiary sectors produce a very large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services. 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. GDP shows how big the economy is.
Answer the following MCQs by choosing the most appropriate option
Question 1.
Production of a commodity, mostly through ways of manufacturing is an activity of which sector?
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector .
(D) Norie of the above
Answer:
(B) Secondary sector
Explanation:
The secondary sector of the economy is an economic sector that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction.
Question 2.
Which of the following is an example of Tertiary activities?
(A) Cotton
(B) Transport
(C) Sugar
(D) All of the above
Answer:
(B) Transport
Question 3.
Which of the following statement is not true?
(A) When we produce a good by exploiting natural resources, it is an activity of the Primary Sector.
(B) The Secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing.
(C) Service sector is also called the industrial sector.
(D) None of the above.
Answer:
(C) Service sector is also called the industrial sector.
Explanation:
Secondary sector is also called industrial because the secondary sector is mostly associated with industries. For example, textile industry, steel industry, etc.
Question 4.
Match the following list of occupations with their sectors:
| Occupation | Sector |
| 1. Workers in wood factory | (i) Primary |
| 2. Dairy | (ii) Secondary |
| 3. Banking | (iii) Tertiary |
(A) 1 – (i), 2 – (iii), 3 – (ii)
(B) 1 – (ii), 2 – (i), 3 – (iii)
(C) 1 – (iii), 2 – (ii), 3 – (i)
(D) None of the above.
Answer:
(B) 1 – (ii), 2 – (i), 3 – (iii)
I. Read the source given below and answer the questions that follows:
Rajesh works in a bank as a bank manager. He goes regularly to his bank and attends his bank services from 9.00 a.m. to 6:00 p.m. He gets his salary at the end of every month. In addition to the salary he also gets provident fund as per the rules laid down by the government. He also gets earned leaves, sick leaves and casual leaves. Apart from leaves, he receives medical and other allowances. Rajesh does not go to bank on Saturdays and Sundays. This is a paid holiday. When he joined bank, he was given an appointment letter stating all the terms and conditions of work and his job is secure.
Ram is Rajesh’s neighbour. He is a daily wage labourer in a nearby grocery shop. He goes to the shop at 7:00 am in the morning and works till 10:00 p.m. in the evening. He gets no other allowances apart from his wages. He is not paid for the days he does not work. He has therefore no leave or paid holidays. Nor was he given any formal appointment letter saying that he has been employed in the shop. He can be asked to leave anytime by his employer if his job is not found satisfactory. His job is not secure. Rajesh works in the organized sector whereas Ram works in an unorganized sector.
Answer the following MCQs by choosing the most appropriate option
Question 1.
Which of the following statement is not true with respect to organized sector?
(A) Organized sector is registered by the government
(B) In organized sector the workers enjoy the security of employment
(C) In organized sector workers does not get several benefits
(D) All of the above
Answer:
(C) In organized sector workers does not get several benefits
Explanation:
Workers in the organised sector get paid leave, payment during holidays, provident fund, gratuity etc
Question 2.
Which of the following statements is an example of unorganised sector activities?
(A) A teacher taking classes in a school
(B) A daily wage labourer working under a contractor
(C) A doctor in a hospital treating a patient
(D) A factory worker going to work in a big factory
Answer:
(B) A daily wage labourer working under a contractor
Explanation:
The unorganized sector jobs are mostly exemplified by daily wage employment or temporary hired labor work which usually does not have a fixed salary or income such as in any organized employment.
Question 3.
In the rural areas, the unorganized sector mostly comprises of
(A) Landless agricultural labourers
(B) Small and marginal farmers
(C) Sharecroppers and artisans
(D) All of the above
Answer:
(D) All of the above
Explanation:
Most of the people working in unorganised sector belong to backward communities. These workers face social discrimination. Their terms of employment render them liable to be terminated at any time.
Question 4.
In the urban areas, unorganised sector comprises mainly of
(A) Workers in small-scale industry
(B) Casual workers in construction
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Explanation:
These workers come to rural areas in search of employment.
II. Read the source given below and answer the questions that follows:
With so many thousands of goods and services produced, you might think this is an impossible task! Not only would the task be enormous, you might also wonder how we can add up cars and computers and nails and furniture. It won’t make sense You are right in thinking so. To get around this problem, economists suggest that the values of goods and services should be used rather than adding up the actual numbers. For example, if 10,000 kgs of wheat is sold at Rs 8 per kg, the value of wheat will be Rs 80,000. The value of 5000 coconuts at Rs 10 per coconut will be Rs 50,000. Similarly, the value of goods and services in the three sectors are calculated, and then added up. Remember, there is one precaution one has to take. Not every good (or service) that is produced and sold needs to be counted. It makes sense only to include the final goods and services.
Take, for instance, a farmer who sells wheat to a flour mill for Rs 8 per kg. The mill grinds the wheat and sells the flour to a biscuit company for Rs 10 per kg. The biscuit company uses the flour and things such as sugar and oil to make four packets of biscuits. It sells biscuits in the market to the consumers for Rs 60 (Rs 15 per packet). Biscuits are the final goods, i.e., goods that reach the consumers. Why are only ‘final goods and services’ counted? In contrast to final goods, goods such as wheat and the wheat flour in this example are intermediate goods. 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. Hence, the value of Rs 60 for the biscuits (final good) already includes the value of flour (Rs 10). Similarly, the value of all other intermediate goods would have been included. To count the value of the flour and wheat separately is therefore not correct because then we would be counting the value of the same things a number of times.
First as wheat, then as flour and finally as biscuits. 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. GDP shows how big the economy is. 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
Answer the following MCQs by choosing the most appropriate option
Question 1.
What method does the Economists suggest in counting the various goods and services?
(A) Value of goods and services should be used rather than adding up the actual numbers.
(B) Values of actual numbers to be used.
(C) Values of intermediate goods to be used.
(D) None of the Above
Answer:
(A) Value of goods and services should be used rather than adding up the actual numbers.
Explanation:
The value of final goods already includes the value of all intermediate goods that are being used in the process of producing the final good, e.g. a farmer sold wheat to a flour mill for Rs. 10 per kg. The mill grinds the wheat and sold the flour to a biscuit company for Rs. 12 per kg.
Question 2.
What is the role of Central government Ministry in measuring GDP?
(A) Collects information relating to total volume of goods and services and their prices and then estimates the GDP
(B) Collects targets relating to total volume of goods and services and their prices and then defines the GDP
(C) Collects estimates relating to total volume of goods and services and their prices and then sums up the GDE
(D) Collects information relating to GDP then estimates the total value of goods and services.
Answer:
(A) Collects information relating to total volume of goods and services and their prices and then estimates the GDP
Explanation:
In India, the 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 ‘
Question 3.
Why not every good (or service) that is produced and sold needs to be counted?
(A) Because the value of intermediate goods only includes the value of all the intermediate goods
(B) Because the value of final goods already includes the value of all the intermediate goods.
(C) Because the value of intermediate goods already includes the value of all the final goods.
(D) Because the valueof services goods already includes the value of all the intermediate goods.
Answer:
(B) Because the value of final goods already includes the value of all the intermediate goods.
Question 4.
Give an example of intermediate goods.
(A) Wheat
(B) Flour
(C) Bread
(D) Biscuit
Answer:
(A) Wheat
Explanation:
Wheat used by a flour mill is an intermediate product since wheat is used as raw material by flour mill. Value is yet to be added to wheat by converting it into flour.