IMPORTANT multiple-choice questions (MCQs) of Chapter 2: Sectors of the Indian Economy, (answers and explanations)
MCQs on Sectors of the Indian Economy
1. Which of the following is NOT a sector of the Indian economy?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) Quaternary Sector
- Answer: D) Quaternary Sector
- Explanation: The primary, secondary, and tertiary sectors are the main sectors of the economy. The quaternary sector is sometimes mentioned but is not traditionally included in the three main sectors.
2. What does the primary sector primarily involve?
- A) Manufacturing goods
- B) Providing services
- C) Extracting natural resources
- D) Information technology
- Answer: C) Extracting natural resources
- Explanation: The primary sector involves the extraction and harvesting of natural resources, such as agriculture, mining, and forestry.
3. Which sector is known for manufacturing and construction activities?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) Informal Sector
- Answer: B) Secondary Sector
- Explanation: The secondary sector includes industries that manufacture goods and construction activities.
4. The tertiary sector is also known as the:
- A) Agricultural Sector
- B) Service Sector
- C) Industrial Sector
- D) Primary Sector
- Answer: B) Service Sector
- Explanation: The tertiary sector is referred to as the service sector, which provides services rather than goods.
5. Which of the following is an example of the tertiary sector?
- A) Farming
- B) Mining
- C) Banking
- D) Construction
- Answer: C) Banking
- Explanation: Banking is a service provided in the tertiary sector, while farming, mining, and construction belong to the primary and secondary sectors.
6. What is the main focus of the primary sector?
- A) Manufacturing
- B) Services
- C) Extraction of raw materials
- D) Technology development
- Answer: C) Extraction of raw materials
- Explanation: The primary sector focuses on extracting raw materials from the earth.
7. Which sector contributes the most to India's GDP as of recent years?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) None of the above
- Answer: C) Tertiary Sector
- Explanation: The tertiary sector has become the largest contributor to India's GDP, reflecting the growth of services in the economy.
8. Which of the following is a characteristic of the informal sector?
- A) Regulated by the government
- B) Provides job security
- C) Lacks formal contracts
- D) High wages
- Answer: C) Lacks formal contracts
- Explanation: The informal sector is characterized by a lack of formal contracts and regulations, often leading to job insecurity.
9. Which of the following activities is part of the secondary sector?
- A) Fishing
- B) Textile manufacturing
- C) Teaching
- D) Retailing
- Answer: B) Textile manufacturing
- Explanation: Textile manufacturing is a production activity that falls under the secondary sector.
10. What is the role of the tertiary sector in the economy?
- A) To provide raw materials
- B) To manufacture goods
- C) To provide services and support
- D) To extract minerals
- Answer: C) To provide services and support
- Explanation: The tertiary sector provides services that support the primary and secondary sectors and the economy as a whole.
11. Which of the following is a feature of the primary sector?
- A) High level of technology
- B) Directly dependent on natural resources
- C) High capital investment
- D) Produces finished goods
- Answer: B) Directly dependent on natural resources
- Explanation: The primary sector is directly dependent on natural resources for its activities.
12. Which sector is primarily responsible for the development of infrastructure?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) None of the above
- Answer: C) Tertiary Sector
- Explanation: The tertiary sector is responsible for developing infrastructure, including transportation, communication, and utilities.
13. Which of the following is an example of a primary sector activity?
- A) Car manufacturing
- B) Software development
- C) Wheat farming
- D) Hospital services
- Answer: C) Wheat farming
- Explanation: Wheat farming is an agricultural activity that falls under the primary sector.
14. The growth of which sector is often associated with economic development?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) All of the above
- Answer: C) Tertiary Sector
- Explanation: The growth of the tertiary sector is often associated with higher levels of economic development and urbanization.
15. Which of the following is a disadvantage of the informal sector?
- A) Flexibility in employment
- B) Lack of job security
- C) High wages
- D) Government support
- Answer: B) Lack of job security
- Explanation: Workers in the informal sector often lack job security and benefits, making it a disadvantage.
16. Which of the following sectors employs the largest number of people in India?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) None of the above
- Answer: A) Primary Sector
- Explanation: The primary sector, particularly agriculture, employs a significant portion of the Indian workforce.
17. What is the main characteristic of the secondary sector?
- A) Extraction of resources
- B) Manufacturing and processing
- C) Providing services
- D) None of the above
- Answer: B) Manufacturing and processing
- Explanation: The secondary sector is characterized by manufacturing and processing raw materials into finished goods.
18. Which of the following is a service provided by the tertiary sector?
- A) Agriculture
- B) Construction
- C) Healthcare
- D) Mining
- Answer: C) Healthcare
- Explanation: Healthcare is a service provided in the tertiary sector.
19. Which sector is most affected by technological advancements?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) All of the above
- Answer: B) Secondary Sector
- Explanation: The secondary sector is significantly affected by technological advancements, which improve manufacturing processes.
20. Which of the following is a feature of the tertiary sector?
- A) Produces goods
- B) Provides services
- C) Extracts resources
- D) None of the above
- Answer: B) Provides services
- Explanation: The tertiary sector is primarily focused on providing services rather than producing goods.
21. What is the significance of the informal sector in the Indian economy?
- A) Provides high-paying jobs
- B) Offers flexibility and employment opportunities
- C) Is fully regulated by the government
- D) None of the above
- Answer: B) Offers flexibility and employment opportunities
- Explanation: The informal sector provides flexible employment opportunities, especially for unskilled workers.
22. Which of the following is a primary sector activity?
- A) Fish processing
- B) Oil refining
- C) Mining coal
- D) Retailing
- Answer: C) Mining coal
- Explanation: Mining coal is an extraction activity that falls under the primary sector.
23. Which sector is crucial for the development of human capital?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) None of the above
- Answer: C) Tertiary Sector
- Explanation: The tertiary sector, particularly education and healthcare, is crucial for developing human capital.
24. Which of the following is a characteristic of the secondary sector?
- A) Low capital investment
- B) High level of technology
- C) Directly dependent on natural resources
- D) Provides services
- Answer: B) High level of technology
- Explanation: The secondary sector often involves a high level of technology in manufacturing processes.
ADVANCE LEVEL QUESTIONS ON
CHAPTER 2: SECTORS OF THE INDIAN ECONOMY
1. Which of the following sectors is primarily concerned with the extraction and production of natural resources?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) Quaternary Sector
Answer: A) Primary Sector
2. The term 'organized sector' refers to:
- A) Employment that is not regulated by the government
- B) Employment that is regulated by the government and provides formal contracts
- C) Informal employment without any job security
- D) Employment in the agricultural sector
Answer: B) Employment that is regulated by the government and provides formal contracts
3. Which of the following is NOT a characteristic of the tertiary sector?
- A) Provides services rather than goods
- B) Includes industries such as healthcare and education
- C) Involves the production of raw materials
- D) Contributes significantly to GDP in developed economies
Answer: C) Involves the production of raw materials
4. The contribution of the agricultural sector to India's GDP has been:
- A) Increasing steadily over the years
- B) Decreasing over the years
- C) Remaining constant
- D) Fluctuating without a clear trend
Answer: B) Decreasing over the years
5. Which of the following is an example of the secondary sector?
- A) Farming
- B) Mining
- C) Manufacturing
- D) Retail
Answer: C) Manufacturing
6. The concept of 'Gross Domestic Product (GDP)' is best defined as:
- A) The total value of all goods and services produced in a country in a year
- B) The total income earned by a country's residents in a year
- C) The total value of exports minus imports
- D) The total value of all financial transactions in a country
Answer: A) The total value of all goods and services produced in a country in a year
7. Which of the following statements about the unorganized sector is true?
- A) It provides job security and benefits to workers
- B) It is characterized by a lack of formal contracts and job security
- C) It is regulated by government policies
- D) It contributes more to the GDP than the organized sector
Answer: B) It is characterized by a lack of formal contracts and job security
8. The rapid growth of the service sector in India can be attributed to:
- A) Increased agricultural productivity
- B) Globalization and technological advancements
- C) Decreased manufacturing output
- D) Government policies favoring agriculture
Answer: B) Globalization and technological advancements
9. Which of the following sectors is primarily responsible for the production of goods?
- A) Primary Sector
- B) Secondary Sector
- C) Tertiary Sector
- D) Quaternary Sector
Answer: B) Secondary Sector
10. The classification of the economy into primary, secondary, and tertiary sectors is based on:
- A) The nature of the economic activities
- B) The size of the enterprises
- C) The level of technology used
- D) The geographical distribution of industries
Answer: A) The nature of the economic activities
CBSE CLASS 10 ECONOMICS IMPORTANT QUESTIONS (MCQS) | ||
S.No | Chapter Name | MCQs |
1 | Development | |
2 | Sectors of Indian economy | |
3 | Money and credit | |
4 | Globalisation and the Indian economy | |
5 | Consumer rights | |
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