Multiple Choice Questions

ECONOMICS - Sectors of the Indian Economy

Updated for CBSE 2027
Board Exam Preparation
78+ Practice Questions
Notes

Practice Questions with Answers

Total 78 questions available

39 min read
Share:
Q. 1
What characterizes activities in the primary sector?
A
Natural resource exploitation
B
Industrial manufacturing
C
Communication support
D
Banking services
Click an option to check your answer
Q. 2
Why is the primary sector considered the base for other products?
A
It involves industrial activity
B
It is associated with agriculture and related sectors
C
It is the final step in production
D
It excludes natural resources
Click an option to check your answer
Q. 3
Which of the following is a benefit of a tertiary sector?
A
The individuals involved in the tertiary sector buy raw materials directly from farmers to convert them into final goods.
B
The individuals involved in the tertiary sector use better quality seeds and manure to produce agricultural goods.
C
The activities of the tertiary sector help in the development of the primary and secondary sector.
D
The tertiary sector helps in the production of goods by directly using natural resources.
Click an option to check your answer
Q. 4
What is another term for the secondary sector?
A
Primary sector
B
Communication sector
C
Agricultural sector
D
Industrial sector
Click an option to check your answer
Q. 5
What characterizes activities in the tertiary sector?
A
Direct use of natural resources
B
Manufacturing processes
C
Support for the development of primary and secondary sectors
D
Communication support
Click an option to check your answer
Q. 6
What is a common feature of goods produced in the primary and secondary sectors?
A
Direct consumption
B
Transportation needs
C
Communication support
D
Storage in godowns
Click an option to check your answer
Q. 7
The goods that are derived by exploiting natural resources are referred to as the goods of -
A
primary sector
B
modern sector
C
secondary sector
D
tertiary sector
Click an option to check your answer
Q. 8
Which of the following best defines the gross domestic product (GDP) of a country?
A
It is the decrease in the value of assets over a given period of time
B
It is the value of final goods and services produced within the domestic territory of a country.
C
It is the difference between the value of goods imported and the value of goods exported
D
It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Click an option to check your answer
Q. 9
What is the role of activities in the tertiary sector in the production process?
A
They directly produce goods
B
They involve industrial manufacturing
C
They are associated with natural resource exploitation
D
They aid or support the production process
Click an option to check your answer
Q. 10
What kind of activities does the tertiary sector encompass?
A
Support for primary and secondary sectors
B
Direct manufacturing
C
Natural resource exploitation
D
Industrial production
Click an option to check your answer
Q. 11
What is the potential solution for Laxmi's unirrigated land?
A
Constructing a well
B
Providing a loan
C
Building a house
D
Government regulations
Click an option to check your answer
Q. 12
What crop could Laxmi cultivate with the help of irrigation during the rabi season?
A
Rice
B
Wheat
C
Barley
D
Corn
Click an option to check your answer
Q. 13
How many people can one hectare of wheat provide employment for, according to the passage?
A
One person
B
Three people
C
Two people
D
Four people
Click an option to check your answer
Q. 14
According to the given passage, irrigation helps in increasing agricultural employment based on which of the following options?
A
The government can spend some money
B
One hectare of wheat can provide employment to two people for 50 days
C
Banks can provide a loan
D
Laxmi will then be able to irrigate her land and take a second crop
Click an option to check your answer
Q. 15
How does irrigation impact Laxmi's agricultural activities?
A
It reduces the need for employment
B
It increases the problem of underemployment
C
It allows for a second crop and additional employment
D
It has no impact on employment
Click an option to check your answer
Q. 16
By setting up a dam, which part of agricultural activities will be impacted?
A
Sowing
B
Watering
C
Fertiliser application
D
Harvesting
Click an option to check your answer
Q. 17
What does the construction of a dam and canals aim to address?
A
Increase in unemployment
B
Decrease in agricultural productivity
C
Underemployment within the agricultural sector
D
Expansion of industrial sectors
Click an option to check your answer
Q. 18
The passage given above relates to which of the following options?
A
Seasonal unemployment
B
Importance of girl child.
C
Importance of agricultural sector
D
Creating more employment opportunities
Click an option to check your answer
Q. 19
What is the intended impact of the dam and canal construction on employment?
A
Increase in unemployment
B
Decrease in underemployment
C
No impact on employment
D
Shift to non-agricultural employment
Click an option to check your answer
Q. 20
In the passage, what role does the agricultural sector play in addressing employment issues?
A
It exacerbates underemployment
B
It generates additional employment through irrigation projects
C
It focuses on industrial development
D
It avoids addressing employment concerns
Click an option to check your answer
Q. 21
Which one of the following pairs is correctly matched?
A
Manufacturing Sector - Gardener
B
Tertiary Sector - Fisherman
C
Primary Sector - Flower Cultivator
D
Secondary Sector - Milk Vendor
Click an option to check your answer
Q. 22
In terms of GDP the share of tertiary sector in 2003 is _________ .
A
between 20 per cent to 30 per cent
B
between 30 per cent to 40 per cent
C
between 50 per cent to 60 per cent
D
70 percent
Click an option to check your answer
Q. 23
Arrange the following in the correct sequence: (i) Buying from farmers
(ii) Government bear some cost
(iii) Selling at fair price
(iv) Ration shop

A
iv-i-ii-iii
B
iii-ii-iv-i
C
i-iv-iii-ii
D
iii-iv-ii-i
Click an option to check your answer
Q. 24
Which sector is the largest employer?
A
Private sector
B
Primary sector
C
Trtiary sector
D
public sector
Click an option to check your answer
Q. 25
Name the sector which continued to be the largest employer till today.
A
Secondary
B
Primary
C
Tertiary
D
None of these
Click an option to check your answer
Q. 26
How do big private companies contribute in the development of a nation?
A
By increasing the demands for their products through advertisements.
B
By increasing their profits.
C
By increasing productivity of the country in the manufacturing of industrial goods.
D
By providing private hospital facilities for the rich.
Click an option to check your answer
Q. 27
Expand GDP.
A
Gross Domestic Product
B
Gross Domestic and Public
C
General Distribution of Production
D
Gross Domicile Production
Click an option to check your answer
Q. 28
Which of the following is true about Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA 2005)?
A
The government has to ensure to increase the number of jobs in unorganised sector.
B
The government has to ensure that all the unemployed individuals in rural areas must get 100 per day as unemployment benefits
C
The government is required to provide free health check ups and medical facilities to unemployed people in rural areas for at least 100 days in a year.
D
The government is required to provide 100 days of employment in rural areas to people who are able to and in need of work.
Click an option to check your answer
Q. 29
Which of the following is another name for primary sector?
A
Service sector
B
Agriculture and related sector
C
IT sector
D
Industrial sector
Click an option to check your answer
Q. 30
Which sector contributes the highest to GDP in our country?
A
Primary sector
B
Secondary sector
C
Tertiary sector
D
Allied sector
Click an option to check your answer
Q. 31
GDP stands for Gross Domestic Product. What does it show? Pick up the correct statement given below:
A
It shows how big is the economy of a country in a given year in terms of its total output.
B
It shows what the total product of a country in a given year without counting the country’s total resources.
C
It shows the number of people involved in production in a particular year.
D
It shows the total value of trade trans-actions of a country in a particular year.
Click an option to check your answer
Q. 32
The sectors are classified in to public and private sectors on the basis of
A
Employment conditions
B
The nature of economic activity
C
Number of workers employed in the enterprises
D
Ownership of enterprises
Click an option to check your answer
Q. 33
Which sector generates services rather than goods?
A
Secondary
B
Primary
C
Tertiary
D
Quaternary
Click an option to check your answer
Q. 34
In which year was the National Rural Employment Guarantee Act implemented?
A
2001
B
2005
C
2000
D
2009
Click an option to check your answer
Q. 35
Workers get job security in the
A
secondary sector
B
primary sector
C
organised sector
D
unorganised sector
Click an option to check your answer
Q. 36
Which sector has shown the highest growth rate in India?
A
Primary
B
Secondary
C
Tertiary
D
Private
Click an option to check your answer
Q. 37
Arrange the following in the correct sequence: (i) Sale of a cloth in the market
(ii) Using cotton fibre to make yarn and then
weave cloths
(iii) Transportation of weave cloth to the market
(iv) Farming of cotton plants

A
iv-ii-iii-i
B
iv-i-ii-iii
C
iii-iv-i-ii
D
i-iv-iii-ii
Click an option to check your answer
Q. 38
Which of the following is a benefit of tertiary sector?
A
The individuals involved in tertiary sector use better quality seeds and manure to produce agricultural goods.
B
The individuals involved in tertiary sector buys raw materials directly from farmers to convert them into final goods.
C
The activities of tertiary sector help in the development of primary and secondary sector.
D
The tertiary sector helps in the production of goods by directly using natural resources.
Click an option to check your answer
Q. 39
Arrange the following in the correct sequence: ii. Cotton spinning
i. Ginning
iii. Dyeing cotton fabric
iv. Growing cotton

A
iii-iv-ii-i
B
iii-iv-i-ii
C
i-iv-iii-ii
D
iv-i-ii-iii
Click an option to check your answer
Q. 40
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
Click an option to check your answer
Q. 41
Choose a method to tackle the problem of nderemployment in a country.
A
The government should focus on developing jobs in the unorganised sector as most of the people are employed in unorganised sector.
B
Identify, promote and locate industries and services where a large number of people can be employed.
C
The government should provide unemploy ment benefits to citizens.
D
The government should close down industries with lower employment levels.
Click an option to check your answer
Q. 42
The sum of production in three sectors within the country is called the
A
Net Domestic Product.
B
Gross Domestic Product.
C
Net National Product.
D
Gross National Product.
Click an option to check your answer
Q. 43
Secondary sector deals with
A
agricultural goods
B
raw goods
C
semi - finished goods
D
manufactured goods
Click an option to check your answer
Q. 44
Which was the largest producing sector of India in 2003 ?
A
Tertiary
B
Quaternary
C
Primary
D
Private
Click an option to check your answer
Q. 45
Production of a commodity, mostly through the natural process, is an activity in ______________ sector.
A
information technology
B
tertiary
C
secondary
D
primary
Click an option to check your answer
Q. 46
Which one of the following is the preceding Government Agency of NITI Aayog?
A
Election Commission
B
Planning Commission
C
Union Public Service Commission
D
University Grants Commission
Click an option to check your answer
Q. 47
Choose one correct statement from the following: Underemployment occurs —
A
when people are not willing to work.
B
when people are working slowly.
C
when people are working less than what they are capable of doing.
D
when people are not paid for their jobs.
Click an option to check your answer
Q. 48
Which was the largest producing sector in 1971–72 ?
A
Primary
B
Secondary
C
Tertiary
D
Private
Click an option to check your answer
Q. 49
Which was the largest producing sector in 1973?
A
Primary sector
B
Secondary sector
C
Tertiary sector
D
Public sector
Click an option to check your answer
Q. 50
Service sector also includes some essential services that may not directly help in the production of goods. State whether true or false.
A
false
B
true
Click an option to check your answer
Q. 51
'Jaggery making' is an example of which sector?
A
Non-economic sector
B
Tertiary sector
C
Secondary sector
D
Primary sector
Click an option to check your answer
Q. 52
Identify the difference between the organised and unorganised sectors.
A
Employees in organised sector are mainly involved in agriculture and allied activities, while the employees in unorganised sector are mainly involved in manufacturing activities that take place with the help of equipment in factories.
B
Firms in organised sector are registered by the government and have to follow certain norms of employment as set by the government, while the unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
C
Employees in organised sector are mainly self-employed, while the employees in unorganised sector are mainly employed in government or public sector jobs.
D
In a country, the contribution of organised sector is minimal to the GDP, while the unorganised sector mainly supports the economic growth of a country.
Click an option to check your answer
Q. 53
Which of the following sectors is the largest producing sector in India?
A
Secondary sector
B
Modern sector
C
Tertiary sector
D
Primary sector
Click an option to check your answer
Q. 54
Underemployment is hidden in contrast to some who does not have a job and is clearly visible as unemploye(d) It is also called _______________ .
A
Hidden employment
B
Disguised unemployment.
C
Unstable employment
D
Less employment
Click an option to check your answer
Q. 55
The goods that are derived by exploiting natural resources are referred to as the goods of _________ .
A
primary sector
B
modern sector
C
secondary sector
D
tertiary sector
Click an option to check your answer
Q. 56
In the past 100 years, there has been a further shift from _______ to ______ in developed countries. This has become the most important in terms of total production.
A
secondary to tertiary sector
B
primary to tertiary sector
C
primary to secondary sector
D
none of the above
Click an option to check your answer
Q. 57
NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed_________ days of employment in a year in many districts of India What are the correct number of days?
A
200 days
B
100 days
C
30 days
D
60 days
Click an option to check your answer
Q. 58
While baking a cake, the cocoa powder used by the baker is an example of which type of good?
A
Intermediate good
B
Raw good
C
Final good
D
Service good
Click an option to check your answer
Q. 59
Which one of the following sectors contribute highest in the GDP of India?
A
Quaternary
B
Tertiary
C
Secondary
D
Primary
Click an option to check your answer
Q. 60
Who among the following fall under the organized sector?
A
Raghu, a daily wage labourer working in a dam site under a contractor.
B
Nafeesa, a doctor getting all employment benefits
C
Purushothaman, a cleaning staff in a private bank.
D
Ammini, a tailor stitching clothes at his home.
Click an option to check your answer
Q. 61
Which of the following measures the proportion of children that die before the age of 1 year as a proportion of 1000 live children born in that particular year?
A
IMR - Infant mortality rate
B
Literacy rate
C
Net attendance ratio
D
Drop out ratio
Click an option to check your answer
Q. 62
Which of the following is true for disguised unemployment?
A
If individuals become unemployed because a country starts using new technology and the skills of workers become obsolete, they are disguisedly unemployed.
B
If individuals become unemployed because they are changing their jobs or moving from one place to another, they are disguisedly unemployed.
C
When individuals are unemployed for more than 100 days in a year, they are disguisedly unemployed.
D
When individuals are engaged in some work, however, they work less than their potential, then they are disguisedly unemployed.
Click an option to check your answer
Q. 63
Employment figures of a country are based on data collected from 5-yearly survey on employment and unemployment. Which organisation conducts this survey?
A
NSSO – National Sample Survey Organisation
B
NREGA 2005 – National Rural Employment Guarantee Act, 2005
C
ILO – International Labour Organisation
D
Census of India
Click an option to check your answer
Q. 64
GDP is the total value of _____________ produced during a particular year.
A
all goods and services
B
all intermediate and final goods and services
C
all intermediate goods and services
D
all final goods and services
Click an option to check your answer
Q. 65
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
members of workers employed in the firm
Click an option to check your answer
Q. 66
NREGA 2005 guarantees work for how many days in a year
A
100
B
120
C
150
D
90
Click an option to check your answer
Q. 67
GDP is the value of……….. produced during a particular year :
A
All goods & services
B
All final goods & services
C
All intermediate goods &services
D
All intermediate & final goods and services
Click an option to check your answer
Q. 68
Which one of the following is a public sector enterprise?
A
TISCO
B
RIL
C
Indian Railway
D
WIPRO
Click an option to check your answer
Q. 69
Bank/ATM is an example of which sector?
A
Industrial
B
Primary
C
Tertiary
D
None of these
Click an option to check your answer
Q. 70
Which of the following is another name for primary sector?
A
Industrial sector
B
IT sector
C
Agriculture and related sector
D
Service sector
Click an option to check your answer
Q. 71
Choose the most appropriate answer. (a) 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
Click an option to check your answer
Q. 72
Agriculture, dairy farming are activities belonging to which of the following sectors?
A
Primary
B
Secondary
C
Tertiary
D
Scientific technology
Click an option to check your answer
Q. 73
Which of the following sector does not come under the service sector in India?
A
Real estate
B
Transport
C
Restaurants
D
Electronic television development
Click an option to check your answer
Q. 74
Tertiary sector provides different types of
A
manufactured goods.
B
services.
C
natural goods.
D
minerals.
Click an option to check your answer
Q. 75
Which sector acts as an aid or support to the other sectors in the economy?
A
Tertiary sector
B
Allied sector
C
Primary sector
D
Secondary sector
Click an option to check your answer
Q. 76
During the period between 1973 to2003, the production has increased most in the
A
primary sector
B
secondary sector
C
tertiary sector
D
all the three sectors
Click an option to check your answer
Q. 77
____________ refers to the activities which are undertaken by people with the object of earning money.
A
Organised activities
B
Unorganised activities
C
Economic activities
D
Noneconomic activities
Click an option to check your answer
Q. 78
Which one of the following is an activity of the unorganised sector?
A
A teacher teaching in a school.
B
A worker going to work in a big factory.
C
A doctor treating patients in a hospital.
D
A daily wage labourer working under a contractor.
Click an option to check your answer

Master this Topic

Complete all questions to strengthen your understanding