Sectors of the Indian Economy · Class 10 Economics: 225 MCQs with answers

Q1. When a good is produced mainly by a natural process, which sector is that?

Q2. Why is the primary sector called 'primary'?

Q3. Which set lists only tertiary activities?

Q4. Read the Assertion and Reason and choose the correct option. Assertion (A): The tertiary sector is also called the service sector. Reason (R): Tertiary activities generate services rather than goods.

Q5. Workers in which sector do not produce goods?

Q6. Which pair correctly completes the sentence? Cotton is a ______ product and cloth is a ______ product.

Q7. Which occupation from the chapter's list is a primary sector activity?

Q8. Which of these is NOT a primary sector activity?

Q9. What does the chapter mean by 'exploiting natural resources' in the primary sector?

Q10. Which of these activities from the chapter depends mainly, but not entirely, on natural factors like rainfall and sunshine?

Q11. Explain the difference between primary, secondary and tertiary sectors with examples.

Q12. Why is the primary sector called primary, and why is the secondary sector called industrial?

Q13. Classify the following under primary, secondary and tertiary: tailor, flower cultivator, courier, potter, bee-keeper, call centre employee.

Q14. GDP is the total value of ______ produced during a particular year.

Q15. Why do economists add the values of goods rather than their numbers?

Q16. According to the history of developed countries, which sector was most important at the initial stages of development?

Q17. Which sequence shows the general pattern observed in developed countries?

Q18. What is GDP? Why are only final goods and services counted in it?

Q19. Distinguish between final goods and intermediate goods with an example.

Q20. Why do economists add the values of goods and services rather than their quantities?

Q21. In terms of GVA, the share of the tertiary sector in 2017-18 is between ______ per cent.

Q22. A graduate has applied for jobs for a year and has no work at all. Which type of unemployment is this?

Q23. Which of these is an urban example of underemployment given in the chapter?

Q24. Why did the chapter choose 1977-78 and 2017-18 for comparing the sectors?

Q25. Which change in the chapter's example gives Laxmi's family extra income without cutting farm output?

Q26. Online ticket booking, digital payments and call centres have expanded rapidly over the past decade. Which reason for the rise of the tertiary sector do these show?

Q27. Two very different groups of people work in India’s service sector. Who are they?

Q28. Distinguish between open unemployment and disguised unemployment.

Q29. A farmer borrows from a moneylender at a very high rate of interest to buy seeds. What does the chapter suggest instead?

Q30. Villagers near a forest collect wild honey but have no buyer nearby. Which suggestion from the chapter fits this village?

Q31. Which body made the job estimates for education and tourism quoted in the chapter?

Q32. How many days of employment a year did MGNREGA 2005 guarantee?

Q33. What replaced MGNREGA 2005 in 2025, according to the chapter?

Q34. In about how many districts was the Right to Work law implemented?

Q35. Underemployment occurs when people ______.

Q36. Consider the following suggestions from the chapter for semi-rural employment. 1. Dal mills for pulses. 2. Cold storages for potatoes and onions. 3. Honey collection centres near forests. Which of the statements given above are correct?

Q37. What does the chapter say many young people under 18 who are not in school may be doing?

Q38. What makes MGNREGA 2005, and Viksit Bharat-G RAM G 2025 after it, worth calling a Right to Work?

Q39. Give three examples of industries or services that can be located in semi-rural areas to create employment.

Q40. What is the dividing line between the public sector and the private sector?

Q41. Kanta receives a monthly salary, provident fund, a paid Sunday holiday and an appointment letter. What does this tell us about her job?

Q42. In Table 2.3, the secondary sector had 115 million workers, 41 million of them organised. How many were unorganised?

Q43. Which of these is an unorganised sector activity?

Q44. Which group of workers does the chapter list among the vulnerable in urban areas?

Q45. What small-scale industries in the unorganised sector need from the government, according to the chapter?

Q46. Which pair shows a public sector and a private sector enterprise, in that order?

Q47. A woman keeps bees and sells the honey her hives produce to a village co-operative. In which sector is her beekeeping?

Q48. A potter shapes clay pots on a wheel in his own courtyard. Which sector does his work belong to?

Q49. A truck company carries rice from Punjab's farms to Kolkata's wholesale markets. Which sector is it in, and why?

Q50. A sugar mill closes after farmers in the area switch from sugarcane to soybean. What does this illustrate?

Q51. Prices of fertilisers and diesel pumpsets rise sharply. Which effect on farmers does the chapter describe?

Q52. Lorry drivers go on a week-long strike. What would the chapter expect to happen?

Q53. Indian textile companies decide to import all their cotton instead of buying at home. What does the chapter say would follow?

Q54. Consider the following statements. 1. The primary sector is also called the agriculture and related sector. 2. The secondary sector changes natural products into other forms. 3. The tertiary sector produces manufactured goods. Which of the statements given above are correct?

Q55. A doctor treats patients in a village clinic. Why is her work placed in the tertiary sector even though it does not help produce goods?

Q56. Which group of occupations belongs entirely to the secondary sector?

Q57. Why does the chapter call the three sectors interdependent?

Q58. A young graduate takes a job answering customer queries for a foreign company from an office in Gurugram. In which sector is her job, and what kind of service is it?

Q59. A student classifies workers by whether they produce natural goods, manufactured goods or services. Which criterion is she using?

Q60. Read the Assertion and Reason and choose the correct option. Assertion (A): Manufacturing can take place only in large factories. Reason (R): The secondary sector changes natural products into other forms.

Q61. Which occupation is correctly matched with its sector?

Q62. Which of these links shows the primary sector depending on the secondary sector?

Q63. A bank gives a loan to a small brick kiln. Which sector is the bank in, and how does it help the kiln?

Q64. A village where most families once grew crops now has several small workshops turning local cane into gur and baskets. Which sector has grown in the village?

Q65. Which pair of occupations from the chapter's list are both tertiary?

Q66. Why is classifying activities into sectors useful, according to the chapter?

Q67. What sets the tertiary sector apart from the other two? Illustrate it.

Q68. Show with two examples how the three sectors are interdependent.

Q69. Is it worth sorting economic activity into primary, secondary and tertiary? Say how it helps.

Q70. Describe the three sectors of economic activity, and explain why they are interdependent.

Q71. 'The tertiary sector is different from the primary and secondary sectors.' Explain with examples.

Q72. A shop sells a farmer's wheat, a mill's flour, and a bakery's bread. For GDP purposes, which of these is the final good if the bread reaches the consumer?

Q73. Why would counting the wheat, the flour and the biscuits separately give a wrong figure for production?

Q74. A fisherman sells 400 kg of fish at Rs 150 per kg. What is the value of his production?

Q75. Read the Assertion and Reason and choose the correct option. Assertion (A): Only final goods and services are counted in GDP. Reason (R): Counting intermediate goods separately would leave the total smaller than it should be.

Q76. A dairy sells milk to a sweet shop, which turns it into peda and sells the peda to customers at a festival. In counting GDP, how is the milk treated?

Q77. In the chapter's biscuit example, the flour sells for Rs 25 per kg and the biscuits for Rs 80. Which value is counted towards GDP?

Q78. Two countries report their GDP for the same year, and Country A's GDP is twice that of Country B. What can we directly conclude from these figures alone?

Q79. Why did India begin reporting sectoral contributions to GVA rather than GDP?

Q80. What does GVA adjust for, compared with GDP?

Q81. Consider the following statements about GDP. 1. It counts final goods and services only. 2. It covers production within a country. 3. It adds up production over five years. Which of the statements given above are correct?

Q82. Why could more people take up crafts, trade and transport as agriculture prospered in early societies?

Q83. What brought about the shift from the primary to the secondary sector in developed countries?

Q84. Read the Assertion and Reason and choose the correct option. Assertion (A): In developed countries, most working people are now employed in the service sector. Reason (R): The primary sector is the most important sector in developed countries today.

Q85. In developed countries, over roughly what period did the secondary sector overtake the primary?

Q86. A country's farmers are moving to factory jobs, and factory goods are becoming cheap and common. Which stage of the developed-country pattern is it in?

Q87. If you add the value added at every stage of producing a good, what total do you get?

Q88. In an early developed economy, a farm labourer moves to a textile mill, and his family starts buying cheap factory-made cloth instead of weaving at home. Which change does this illustrate?

Q89. Which statement best explains why GDP is a useful figure?

Q90. In a country today, most workers are employed in banks, hospitals, schools and software firms, and services produce most of the output. Which stage of the developed-country pattern does this match?

Q91. In early developed economies, which workers appeared as farming grew more productive?

Q92. Consider the following statements about the historical pattern. 1. At first, most goods came from the primary sector. 2. Later, the secondary sector became most important. 3. Now the tertiary sector is most important in developed countries. Which of the statements given above are correct?

Q93. Why is it important to say GDP covers a 'particular year'?

Q94. What does the past of the developed countries suggest about how activity moves between sectors?

Q95. What is GVA, and why did India begin using it?

Q96. Explain how the total production of an economy is measured, with reference to the chapter's biscuit example.

Q97. Describe the historical change in the importance of sectors in developed countries.

Q98. Looking at the chapter's Graph 2, which sector's share in GVA fell the most between 1977-78 and 2017-18?

Q99. Read the Assertion and Reason and choose the correct option. Assertion (A): The primary sector remains the largest employer in India. Reason (R): Not enough jobs were created in the secondary and tertiary sectors.

Q100. Industrial output rose more than nine times over forty years, but industrial employment rose only about three times. What does this show?

Q101. A town grows a new hospital, two private schools and a police station as its population rises. Which reason for the rise of the tertiary sector does this illustrate?

Q102. As a district's farms produce more grain, the number of trucks, warehouses and wholesale traders grows. Which reason for tertiary growth does this show?

Q103. As incomes in a city rise, restaurants, travel agencies, coaching centres and private clinics multiply. Which reason for tertiary growth is at work?

Q104. Why does the chapter say that 'only a part' of the service sector is growing in importance?

Q105. A repair person in a small town fixes a few radios a week and earns very little, but has no other work available. How does the chapter describe such workers?

Q106. Consider the following statements about India between 1977-78 and 2017-18. 1. Production increased in all three sectors. 2. The tertiary sector became the largest producing sector. 3. The tertiary sector became the largest employer. Which of the statements given above are correct?

Q107. Laxmi's family of five works all year on two hectares of rain-fed land. If two members leave for factory jobs, what happens?

Q108. Why is the situation of Laxmi's family called disguised unemployment rather than open unemployment?

Q109. A vendor pushes a cart through the streets all day and sells little. Why does the chapter count such people among the underemployed?

Q110. Read the Assertion and Reason and choose the correct option. Assertion (A): Removing some workers from agriculture would cut agricultural production sharply. Reason (R): There are more people in agriculture than necessary.

Q111. Which of the following best states the chapter's conclusion about the three sectors in India?

Q112. Graph 3 shows the secondary sector's share of employment rising from 11% to 25%. Which statement best reads this change?

Q113. Service output rose 14 times while service employment rose about five times. What does this suggest about the growth of service jobs?

Q114. Which of these conditions of Laxmi's farm explains why her family has little other work?

Q115. Consider the following statements about disguised unemployment. 1. The people affected appear to be working. 2. Their removal does not reduce output. 3. It is found only in agriculture. Which of the statements given above are correct?

Q116. In a developing country, why must the government take responsibility for basic services such as hospitals, schools and courts?

Q117. In 1977-78, 71% of workers were in the primary sector. By 2017-18 the figure was 44%. Which reading is correct?

Q118. A plumber in a city waits at a labour point each morning and finds work only on three days a week. Which type of employment situation is this?

Q119. According to the chapter, what would happen if lakhs of underemployed farmers were given proper work outside agriculture?

Q120. Which pair correctly matches a reason for tertiary growth with an example?

Q121. Why is disguised unemployment harder for the government to notice than open unemployment?

Q122. Give four reasons why the tertiary sector has become important in India.

Q123. Why did a shift in employment out of the primary sector not take place in India like the shift in production?

Q124. What is meant by disguised unemployment? Give one example of it from urban and rural areas.

Q125. Explain the rising importance of the tertiary sector in production in India.

Q126. What is disguised unemployment? How does it differ from open unemployment? Explain with examples.

Q127. Laxmi gets a well and grows wheat on one hectare in the rabi season. If one hectare employs two people for 50 days, how many person-days of work are created?

Q128. If Laxmi irrigates both her hectares and grows wheat on them, how many people could be employed for 50 days, at the chapter's rate?

Q129. Why does a new dam with canals reduce underemployment in agriculture?

Q130. The government builds good rural roads so mini-trucks can reach a group of villages. Who gains employment, according to the chapter?

Q131. Many farmers in a district start growing arhar and chickpea. Which step would create semi-rural employment and help them sell these crops?

Q132. Potato farmers have to sell their whole crop right after harvest, when prices are lowest. Which facility suggested in the chapter would help them?

Q133. Why does the chapter favour locating industries in semi-rural areas rather than only in large cities?

Q134. About 60% of India's population is aged 5-29, and only about 51% of them attend educational institutions. How does the chapter link this to employment?

Q135. A hill state improves roads to its lakes, trains guides and supports homestays. According to the chapter's estimate for the whole country, what could such tourism improvement do?

Q136. Under MGNREGA 2005, a rural worker able to work applies for a job but is not given any work. What is she entitled to?

Q137. Read the Assertion and Reason and choose the correct option. Assertion (A): MGNREGA 2005 is referred to as the Right to Work. Reason (R): Works such as ponds and check-dams were preferred under the scheme.

Q138. Why did the government need a short-term measure like the Right to Work in addition to dams, roads and schools?

Q139. Consider the following statements about MGNREGA 2005. 1. It covered people in rural areas. 2. It guaranteed 100 days of work a year. 3. It guaranteed a permanent job to every adult in India. Which of the statements given above are correct?

Q140. Why should we be worried about underemployment, even though the people affected appear to be working?

Q141. Read the Assertion and Reason and choose the correct option. Assertion (A): Along with water, farmers need cheap agricultural credit for farming to improve. Reason (R): Moneylenders lend to poor farmers at very low rates of interest.

Q142. A state wants to create jobs and also improve rural health. Which step suggested in the chapter does both?

Q143. Which of these ways of creating employment works mainly within the agricultural sector itself?

Q144. How would income and employment rise if farmers had both irrigation and marketing facilities?

Q145. Which of these is a way to increase employment in urban areas, in the spirit of the chapter?

Q146. Which pair correctly matches a problem with the chapter's suggested measure?

Q147. Wheat farmers in a district find that private traders offer prices far below their costs at harvest time. Which measure from the chapter's matching exercise addresses this problem?

Q148. A farmer is deep in debt to a moneylender. Which measure from the chapter's matching exercise helps most directly?

Q149. Give farmers irrigation and somewhere to sell: what happens to income and to employment?

Q150. How can education and health create employment, according to the chapter?

Q151. Why should we be worried about underemployment?

Q152. Suggest ways of creating more employment in rural areas, with reference to the chapter.

Q153. Explain the objective and main features of MGNREGA 2005, and state what replaced it.

Q154. Kamal works 7.30 a.m. to 8 p.m. in a grocery shop, is not paid for days he misses, and can be asked to leave any time. Which feature of his job most clearly marks it as unorganised?

Q155. Using Table 2.3 (late 1990s), the organised sector had 82 million and the unorganised 393 million workers. About what percentage were in the unorganised sector?

Q156. In Table 2.3, the primary sector had 232 million workers, of whom only 1 million were organised. What percentage of agricultural workers were unorganised?

Q157. Consider the following statements about organised sector workers. 1. They enjoy security of employment. 2. They are paid overtime for extra hours. 3. They can be asked to leave without any reason. Which of the statements given above are correct?

Q158. Read the Assertion and Reason and choose the correct option. Assertion (A): Workers in the unorganised sector need protection. Reason (R): The unorganised sector accounts for a large share of total employment in India.

Q159. A textile mill closes, and its former permanent workers now sell vegetables from carts. What trend in the chapter does this illustrate?

Q160. Why do some organised enterprises operate as if they were in the unorganised sector?

Q161. A sharecropper in Bihar has no land of his own, borrows at high interest, and sells his share of the crop immediately after harvest. Which support does the chapter suggest for such rural workers?

Q162. Why does the chapter say protecting unorganised workers matters for social development as well as economic development?

Q163. A town's buses are run by the state transport corporation, while a rival bus service is owned by a local businessman. Which classification separates these two services?

Q164. A milk vendor buys milk from farmers and sells it door to door in a town. In which sector is the vendor's work?

Q165. A school divides its students into 'primary' and 'secondary' sections. How does that criterion differ from the economy's?

Q166. Which statement best explains how the tertiary sector differs from the other two?

Q167. A family collects wild honey in a forest, a factory bottles it, and a shop sells it. How are the three stages classified?

Q168. Which group consists only of service providers the chapter says may not directly help produce goods?

Q169. A cyclone damages cotton crops across a state. Which chain of effects is most consistent with the chapter?

Q170. Using a product of your choice, trace how it passes through the three sectors, and show what would happen if one sector failed.

Q171. A student defines GDP as 'all goods produced in India in the last five years'. Which corrections are needed?

Q172. A potter buys clay for Rs 200 and sells pots to a shop for Rs 900; the shop sells them to customers for Rs 1,200. What is the total value added by the potter and the shop together?

Q173. A tyre factory sells tyres to a car company and also to motorists at a repair shop. How should the tyres be treated in GDP?

Q174. A tailor buys cloth for Rs 400 and sells the shirt he makes for Rs 700. What value has the tailor added?

Q175. A bakery sells bread worth Rs 5,000 to consumers, made with flour it bought for Rs 2,000. An official records the production as Rs 7,000. By how much is it overstated?

Q176. Which phrase in the definition of GDP excludes goods produced by Indian firms in other countries?

Q177. A village produces 2,000 coconuts sold at Rs 20 each and 500 kg of rice sold at Rs 40 per kg. What is the value of this production?

Q178. An Indian company makes cars in a factory in Thailand and sells them to Thai buyers. Is the value of these cars part of India's GDP?

Q179. A student says the farmer in the chapter's cartoon is underpaid because his wheat is not counted in GDP. What is the flaw in this argument?

Q180. A mill buys cotton for Rs 5,000, spins yarn and sells it for Rs 8,000 to a weaver, who sells cloth to shoppers for Rs 12,000. What value enters GDP?

Q181. How can the value of a good be calculated using the value added at each stage?

Q182. 'GDP measures the size of an economy.' Explain what GDP includes and excludes, and how it is measured in India.

Q183. In 2017-18, 44% of workers were in the primary sector, producing about 19% of GVA. What does this suggest about agricultural workers?

Q184. A farm of three acres needs three workers, but seven family members work on it all year. How many are disguisedly unemployed?

Q185. A student says, 'The tertiary sector plays no significant role in India's development.' Which evidence from the chapter best contradicts this?

Q186. Graph 2 shows the primary sector's share of GVA falling from about 47% to about 19%. Does this mean primary production fell in absolute terms?

Q187. Why does the text's claim that 'more than half of the workers' are in the primary sector need care in 2017-18 answers?

Q188. Graph 1 of the chapter shows total GVA in 2017-18 as roughly how large?

Q189. 'The tertiary sector plays no real part in the development of the Indian economy.' Do you agree? Give two reasons.

Q190. 'While production shifted to the tertiary sector, employment did not.' Explain this statement and its consequence for agricultural workers.

Q191. A village head must choose works under the Right to Work law. Which choice best follows the Act's preference?

Q192. A tomato-growing region sees prices crash every season because the crop rots quickly. Which suggested industry would both employ people and help farmers?

Q193. A student says, 'Creating jobs and improving development are separate goals.' How does the chapter's education example challenge this?

Q194. Match the problem 'Compelled to sell grain to local traders soon after harvest' with its measure from the chapter's exercise.

Q195. In the chapter's exercise, which measure fits the problem 'No job in the off season'?

Q196. Imagine you are the village head. Suggest three activities under the Right to Work that would also increase people's income.

Q197. 'Every state or region has scope to raise income and create jobs for the people who live there.' Explain with examples from the chapter.

Q198. A doctor runs her own clinic in a market with a formal licence, registered with the government. Which sector is she in?

Q199. A research scholar in Surat found 15% of workers in registered offices and factories, 15% in licensed shops and clinics, 20% on the street or in construction or domestic work, and 50% in unregistered workshops. What percentage is unorganised?

Q200. In Ahmedabad, 11 lakh of 15 lakh workers were unorganised, and the organised sector generated Rs 32,000 million of the city's Rs 60,000 million income. What does this show?