Sectors of the Indian Economy

Which sector involves activities that directly use natural resources?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: a) Primary

The cultivation of crops is an example of which sector?
a) Industrial
b) Primary
c) Service
d) Quaternary
Answer: b) Primary

The transformation of raw materials into finished products occurs in which sector?
a) Primary
b) Tertiary
c) Secondary
d) Service
Answer: c) Secondary

Which sector provides support for the primary and secondary sectors?
a) Quaternary
b) Tertiary
c) Primary
d) Secondary
Answer: b) Tertiary

What is another name for the service sector?
a) Industrial sector
b) Tertiary sector
c) Primary sector
d) Manufacturing sector
Answer: b) Tertiary sector

Producing goods by exploiting natural resources is a feature of which sector?
a) Secondary
b) Primary
c) Tertiary
d) Private
Answer: b) Primary

Manufacturing sugar from sugarcane falls under which sector?
a) Tertiary
b) Primary
c) Secondary
d) Quaternary
Answer: c) Secondary

Transporting goods produced in the primary and secondary sectors belongs to:
a) Primary sector
b) Tertiary sector
c) Secondary sector
d) Industrial sector
Answer: b) Tertiary sector

A teacher providing education is part of which sector?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: c) Tertiary

Which term represents the total value of all final goods and services produced within a country in a year?
a) Gross National Product (GNP)
b) Net Domestic Product (NDP)
c) Gross Domestic Product (GDP)
d) Per Capita Income
Answer: c) Gross Domestic Product (GDP)

Why are only final goods included in GDP calculations?
a) To avoid double counting
b) To include all production
c) To simplify tax collection
d) To increase GDP figures
Answer: a) To avoid double counting

Which sector is the largest employer in India?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: a) Primary

What is disguised unemployment?
a) Overemployment in urban sectors
b) More people working than required without affecting production
c) Complete unemployment
d) Unemployment in organized sectors
Answer: b) More people working than required without affecting production

Workers in the unorganized sector generally:
a) Have job security and benefits
b) Work under formal contracts
c) Lack job security and proper wages
d) Receive high wages
Answer: c) Lack job security and proper wages

What is the primary objective of MGNREGA 2005?
a) Provide free education
b) Guarantee 100 days of wage employment to rural households
c) Promote agriculture mechanization
d) Subsidize industrial development
Answer: b) Guarantee 100 days of wage employment to rural households

Which sector contributes the most to India’s GDP as of recent trends?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: c) Tertiary

The sector that includes doctors, lawyers, and bankers is:
a) Primary
b) Secondary
c) Tertiary
d) Industrial
Answer: c) Tertiary

What is an example of disguised unemployment in rural areas?
a) Daily wage laborers
b) Multiple family members working on the same small farm
c) Government employees
d) Contract workers
Answer: b) Multiple family members working on the same small farm

The service sector includes which type of services?
a) Only financial services
b) Transportation and education
c) Agriculture and mining
d) Manufacturing
Answer: b) Transportation and education

Which government act guarantees rural employment in India?
a) Employment Protection Act
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Workers Welfare Act
d) Labor Security Act
Answer: b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The production of bricks from clay is an example of which sector?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: b) Secondary

Farming is considered a part of which economic sector?
a) Primary
b) Secondary
c) Tertiary
d) Industrial
Answer: a) Primary

The contribution of which sector has been increasing rapidly in India’s GDP?
a) Primary
b) Secondary
c) Tertiary
d) Informal
Answer: c) Tertiary

Why is the service sector also called the tertiary sector?
a) It provides primary products
b) It provides support to the primary and secondary sectors
c) It involves industrial activities
d) It only involves government services
Answer: b) It provides support to the primary and secondary sectors

What does “GDP” stand for?
a) Gross Domestic Production
b) Gross Domestic Product
c) Global Development Percentage
d) Gross Demand Production
Answer: b) Gross Domestic Product

Which sector employs workers without formal contracts or regular work conditions?
a) Organized
b) Unorganized
c) Private
d) Public
Answer: b) Unorganized

What is the primary aim of the public sector?
a) Maximizing profits
b) Serving the public interest
c) Promoting private ownership
d) Reducing taxes
Answer: b) Serving the public interest

Railways in India are part of which sector?
a) Public
b) Private
c) Unorganized
d) Secondary
Answer: a) Public

The act of selling agricultural products directly to consumers falls under which sector?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: c) Tertiary

Disguised unemployment in agriculture occurs when:
a) Workers earn high wages
b) Productivity increases with fewer workers
c) All workers are fully employed
d) New technology is introduced
Answer: b) Productivity increases with fewer workers

Which of the following is an example of a natural product?
a) Cotton
b) Yarn
c) Cloth
d) Biscuit
Answer: a) Cotton

The production of yarn from cotton belongs to which sector?
a) Primary
b) Secondary
c) Tertiary
d) Informal
Answer: b) Secondary

Workers in which sector have job security and benefits like paid leave and pensions?
a) Organized
b) Unorganized
c) Informal
d) Contractual
Answer: a) Organized

Which activity does NOT belong to the primary sector?
a) Mining
b) Fishing
c) Farming
d) Transporting goods
Answer: d) Transporting goods

What is meant by the term “final goods”?
a) Goods sold in the international market
b) Goods that are ready for consumption
c) Raw materials for production
d) Intermediary goods used in manufacturing
Answer: b) Goods that are ready for consumption

What is one primary objective of the government’s public sector activities?
a) Profit maximization
b) Welfare of the people
c) Increasing export of goods
d) Promoting foreign investments
Answer: b) Welfare of the people

Which sector requires skilled and educated workers for IT and communication jobs?
a) Primary
b) Secondary
c) Tertiary
d) Public
Answer: c) Tertiary

What is the main goal of private sector activities?
a) Social welfare
b) Maximizing profits
c) Promoting education
d) Expanding infrastructure
Answer: b) Maximizing profits

Which sector includes activities like banking, insurance, and trade?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: c) Tertiary

The term “underemployment” refers to:
a) People working below their skill level or capacity
b) People with high wages
c) Unavailability of raw materials
d) Overemployment in organized sectors
Answer: a) People working below their skill level or capacity

Which of the following is an example of disguised unemployment?
a) A worker on strike
b) A family of five working on a small plot of land
c) A person working in a factory
d) A teacher teaching students
Answer: b) A family of five working on a small plot of land

What is the primary focus of organized sector jobs?
a) Promoting tourism
b) Regular and secure employment
c) Seasonal employment
d) Casual labor
Answer: b) Regular and secure employment

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) ensures employment for how many days a year?
a) 200
b) 150
c) 100
d) 50
Answer: c) 100

What is a characteristic of the tertiary sector?
a) Produces raw materials
b) Manufactures goods
c) Provides services
d) Exports agricultural products
Answer: c) Provides services

Transporting goods is an example of which sector?
a) Primary
b) Secondary
c) Tertiary
d) Industrial
Answer: c) Tertiary

The GDP of a country represents:
a) Total imports and exports
b) Total employment in all sectors
c) Value of all final goods and services produced within a year
d) Income of government employees
Answer: c) Value of all final goods and services produced within a year

What is the main cause of underemployment in agriculture?
a) Excessive use of fertilizers
b) Overdependence on agriculture with low productivity
c) High technology in agriculture
d) Decline in industrial jobs
Answer: b) Overdependence on agriculture with low productivity

Who is NOT part of the unorganized sector?
a) A street vendor
b) A construction worker
c) A shopkeeper without a license
d) A teacher in a government school
Answer: d) A teacher in a government school

Which sector is responsible for processing raw materials into finished products?
a) Primary
b) Secondary
c) Tertiary
d) Informal
Answer: b) Secondary

Which of the following is a government-supported public sector activity?
a) Private schools
b) Railways
c) Manufacturing mobile phones
d) Exporting textiles
Answer: b) Railways

Which sector involves mining and quarrying?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: a) Primary

The term “service sector” refers to which of the following?
a) Production of goods
b) Provision of services like education, healthcare, and banking
c) Extraction of raw materials
d) Construction of buildings
Answer: b) Provision of services like education, healthcare, and banking

Which sector is considered the backbone of the Indian economy?
a) Tertiary
b) Secondary
c) Primary
d) Quaternary
Answer: c) Primary

How does the government encourage employment in rural areas?
a) By promoting only urban industries
b) Through initiatives like MGNREGA
c) By importing goods from other countries
d) By reducing agricultural subsidies
Answer: b) Through initiatives like MGNREGA

Which sector is responsible for creating public infrastructure like roads and bridges?
a) Primary
b) Tertiary
c) Secondary
d) Public
Answer: d) Public

What does the term “organized sector” imply?
a) Jobs with regular employment and benefits
b) Employment based on contracts only
c) Jobs without security or formal contracts
d) Seasonal and informal jobs
Answer: a) Jobs with regular employment and benefits

Fishing falls under which economic sector?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: a) Primary

Manufacturing of steel falls under:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Quaternary sector
Answer: b) Secondary sector

Which of the following is NOT an example of the service sector?
a) Banking
b) Teaching
c) Mining
d) Tourism
Answer: c) Mining

Which sector primarily contributes to India’s GDP growth in recent years?
a) Primary
b) Secondary
c) Tertiary
d) Agricultural
Answer: c) Tertiary

A company making furniture from wood operates in which sector?
a) Primary
b) Secondary
c) Tertiary
d) Unorganized
Answer: b) Secondary

What is the aim of employment schemes like MGNREGA?
a) Reduce unemployment by creating public works jobs
b) Build luxury infrastructure
c) Provide subsidies to industrialists
d) Increase agricultural mechanization
Answer: a) Reduce unemployment by creating public works jobs

Which of these is NOT considered part of the unorganized sector?
a) Daily wage laborers
b) Contract-based workers
c) Private company employees with regular salaries
d) Street vendors
Answer: c) Private company employees with regular salaries

What is the main disadvantage of the unorganized sector?
a) No need for government regulations
b) Lack of job security and benefits
c) High wages and productivity
d) Employment for all seasons
Answer: b) Lack of job security and benefits

Which of the following is an example of disguised unemployment?
a) Two workers managing a large farm efficiently
b) Five people doing the work of two on a small farm
c) A software engineer working on multiple projects
d) A teacher teaching large classrooms
Answer: b) Five people doing the work of two on a small farm

What is the role of the private sector in India?
a) Provide employment with social security
b) Focus on profit-driven activities
c) Develop government infrastructure
d) Provide free education to all
Answer: b) Focus on profit-driven activities

In which sector does tourism fall?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: c) Tertiary

What is meant by public sector enterprises?
a) Private companies producing goods
b) Industries owned and managed by the government
c) Seasonal agricultural businesses
d) Multinational companies operating in India
Answer: b) Industries owned and managed by the government

Mining of coal is an example of which sector?
a) Primary
b) Secondary
c) Tertiary
d) Organized
Answer: a) Primary

Which type of unemployment is prevalent in rural India?
a) Structural unemployment
b) Disguised unemployment
c) Cyclical unemployment
d) Frictional unemployment
Answer: b) Disguised unemployment

Why is the tertiary sector gaining importance in India?
a) Increasing population in rural areas
b) Rising demand for services like healthcare, education, and IT
c) Decline of industries in cities
d) Improved agricultural techniques
Answer: b) Rising demand for services like healthcare, education, and IT

Which organization is responsible for implementing MGNREGA?
a) Reserve Bank of India
b) Ministry of Rural Development
c) Indian Railways
d) Ministry of Finance
Answer: b) Ministry of Rural Development

How does the secondary sector contribute to economic development?
a) By directly providing raw materials
b) By converting raw materials into valuable finished goods
c) By promoting imports
d) By creating seasonal employment
Answer: b) By converting raw materials into valuable finished goods

Which sector has the highest level of informal employment?
a) Organized sector
b) Private sector
c) Unorganized sector
d) Public sector
Answer: c) Unorganized sector

The development of roads, railways, and bridges is categorized under:
a) Primary sector
b) Tertiary sector
c) Secondary sector
d) Public infrastructure sector
Answer: d) Public infrastructure sector

Which sector provides support for trade, communication, and banking?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: c) Tertiary

Which of the following best describes organized sector employment?
a) Seasonal and irregular work
b) Regular jobs with security and benefits
c) Jobs without contracts
d) Jobs only in rural areas
Answer: b) Regular jobs with security and benefits

What is one major characteristic of the primary sector?
a) Dependence on natural resources
b) Heavy reliance on advanced technology
c) Focus on manufacturing goods
d) Dependence on IT services
Answer: a) Dependence on natural resources

What does the secondary sector primarily focus on?
a) Selling products
b) Processing raw materials into goods
c) Extracting natural resources
d) Providing financial services
Answer: b) Processing raw materials into goods

Which sector is heavily dependent on human labor in rural India?
a) Primary
b) Secondary
c) Tertiary
d) Organized
Answer: a) Primary

Which industry is considered part of the secondary sector?
a) Textile manufacturing
b) Agriculture
c) Banking
d) Fishing
Answer: a) Textile manufacturing

What is the main problem faced by workers in the unorganized sector?
a) Excessive taxation
b) Lack of formal contracts and benefits
c) Limited job opportunities
d) Poor working hours
Answer: b) Lack of formal contracts and benefits

What is GDP used to measure?
a) Total tax revenue of a country
b) Economic performance of a country
c) Population growth
d) Annual income of industries
Answer: b) Economic performance of a country

Which sector is most impacted by technological advancements?
a) Primary
b) Secondary
c) Tertiary
d) Public
Answer: c) Tertiary

In which sector is job security the highest?
a) Unorganized
b) Organized
c) Informal
d) Private
Answer: b) Organized

What type of employment is common in cities?
a) Disguised unemployment
b) Secondary and tertiary sector jobs
c) Agricultural labor
d) Seasonal farming
Answer: b) Secondary and tertiary sector jobs

Which sector is referred to as the “service sector”?
a) Primary
b) Secondary
c) Tertiary
d) Informal
Answer: c) Tertiary

Which sector includes industries like steel production and car manufacturing?
a) Primary
b) Secondary
c) Tertiary
d) Public
Answer: b) Secondary

Which is NOT a feature of the tertiary sector?
a) Providing IT services
b) Supporting manufacturing industries
c) Extracting raw materials
d) Offering banking and healthcare
Answer: c) Extracting raw materials

Which sector has been the largest contributor to employment in India?
a) Tertiary
b) Primary
c) Secondary
d) Public
Answer: b) Primary

What is one of the major goals of public sector enterprises?
a) Ensure profit maximization
b) Provide essential services to the public
c) Promote private investments
d) Export goods to other countries
Answer: b) Provide essential services to the public

What does underemployment in the primary sector mean?
a) All workers are employed at full capacity
b) Workers are engaged in low-productivity jobs
c) No one is employed in agriculture
d) Surplus workers are laid off
Answer: b) Workers are engaged in low-productivity jobs

Which of the following is an example of a public sector activity?
a) Railways
b) Private schools
c) Cement manufacturing
d) Exporting textiles
Answer: a) Railways

What is the primary focus of the primary sector?
a) Processing raw materials
b) Extracting and harvesting natural resources
c) Providing essential services
d) Manufacturing consumer goods
Answer: b) Extracting and harvesting natural resources

What type of employment is provided under MGNREGA?
a) Permanent employment
b) Guaranteed seasonal employment in rural areas
c) Only factory jobs
d) Self-employment opportunities
Answer: b) Guaranteed seasonal employment in rural areas

How does the secondary sector contribute to economic growth?
a) By generating raw materials
b) By creating jobs in manufacturing industries
c) By increasing agricultural output
d) By promoting informal employment
Answer: b) By creating jobs in manufacturing industries

Which sector involves activities like tourism and hospitality?
a) Primary
b) Secondary
c) Tertiary
d) Public
Answer: c) Tertiary

How does the government promote employment in rural India?
a) By reducing wages in factories
b) By implementing schemes like MGNREGA
c) By promoting private businesses only
d) By outsourcing work to cities
Answer: b) By implementing schemes like MGNREGA

What is the primary goal of private sector companies?
a) Providing free services
b) Maximizing profits
c) Promoting social welfare
d) Supporting government projects
Answer: b) Maximizing profits

Which sector includes doctors, teachers, and shopkeepers?
a) Primary
b) Secondary
c) Tertiary
d) Industrial
Answer: c) Tertiary