Class 10 Economics — Sectors of the Indian Economy : Question Bank
A. MCQs — Choose the Correct Answer
1.
Which sector directly uses natural resources to produce goods?
A. Secondary sector
B. Tertiary sector
C. Primary sector
D. Private sector
Answer: C
2.
Which of the following belongs to the secondary sector?
A. Fishing
B. Cotton cultivation
C. Making cloth from cotton
D. Banking
Answer: C
3.
The tertiary sector is also known as the:
A. Agricultural sector
B. Industrial sector
C. Service sector
D. Manufacturing sector
Answer: C
4.
Which activity is an example of the tertiary sector?
A. Mining
B. Manufacturing sugar
C. Transporting goods
D. Growing wheat
Answer: C
5.
Why is the primary sector called “primary”?
A. It uses modern technology
B. It provides the base for other products
C. It employs the largest number of people everywhere
D. It produces only services
Answer: B
6.
Which sequence correctly represents the transformation of cotton?
A. Cloth → cotton → yarn
B. Cotton → yarn → cloth
C. Yarn → cotton → cloth
D. Cloth → yarn → cotton
Answer: B
7.
Which of the following is an intermediate good?
A. Biscuits purchased by a consumer
B. Flour used by a biscuit manufacturer
C. A shirt purchased for personal use
D. A finished car purchased by a family
Answer: B
8.
Why are intermediate goods not counted separately while calculating GDP?
A. They have no economic value
B. They are not sold
C. Their value is already included in final goods
D. They are always imported
Answer: C
9.
GDP is the value of:
A. All goods produced in a country
B. All intermediate goods
C. All final goods and services produced within a country in a year
D. Only agricultural goods
Answer: C
10.
Which sector became the largest producing sector in India by 2017–18 according to the chapter?
A. Primary
B. Secondary
C. Tertiary
D. Agricultural
Answer: C
11.
Which sector continued to employ the largest share of workers?
A. Primary
B. Secondary
C. Tertiary
D. Private
Answer: A
12.
The difference between growth in production and growth in employment is particularly important because it leads to:
A. Inflation
B. Disguised unemployment
C. International trade
D. Privatisation
Answer: B
13.
A farmer has five family members working on a small farm, but the same output could be produced by three workers. This is an example of:
A. Open unemployment
B. Seasonal employment
C. Disguised unemployment
D. Industrial employment
Answer: C
14.
Which is a major way of reducing underemployment in agriculture?
A. Reducing irrigation
B. Improving irrigation facilities
C. Closing rural industries
D. Reducing access to credit
Answer: B
15.
Which of the following can generate employment in rural areas?
A. Cold-storage facilities
B. Rural roads
C. Agro-based industries
D. All of the above
Answer: D
16.
The organised sector is characterised by:
A. No formal rules
B. Regular employment conditions
C. No government regulation
D. No job security
Answer: B
17.
Which worker is most likely to belong to the unorganised sector?
A. A government employee receiving regular salary
B. A worker in a registered factory with formal employment
C. A daily-wage worker in a small shop
D. A regular bank employee
Answer: C
18.
Which is generally a feature of organised-sector employment?
A. No paid leave
B. No fixed working hours
C. Job security and employment benefits
D. No formal appointment
Answer: C
19.
Which classification is based on ownership?
A. Primary and secondary
B. Organised and unorganised
C. Public and private
D. Rural and urban
Answer: C
20.
In the public sector, assets are mainly owned by:
A. Private individuals
B. Foreign companies
C. The government
D. Workers
Answer: C
21.
The main motive generally associated with private-sector activities is:
A. Social welfare only
B. Profit
C. Employment guarantee
D. Tax collection
Answer: B
22.
Which is an example of a public-sector activity?
A. A privately owned shop
B. Indian Railways
C. A private clinic
D. A private factory
Answer: B
23.
Why does the government undertake activities such as building roads and bridges?
A. They are always highly profitable
B. They are essential and may require large investment
C. Private businesses are prohibited from operating
D. They produce only agricultural goods
Answer: B
24.
Which of the following is not a tertiary-sector activity?
A. Banking
B. Transport
C. Teaching
D. Mining
Answer: D
25.
Which factor has contributed to the growth of the tertiary sector?
A. Rising demand for services
B. Expansion of agriculture and industry
C. Growth of information technology
D. All of the above
Answer: D
B. Assertion–Reason Questions
Choose:
A. Both A and R are true, and R correctly explains A.
B. Both A and R are true, but R does not correctly explain A.
C. A is true, but R is false.
D. A is false, but R is true.
1.
Assertion: The tertiary sector has become increasingly important in India.
Reason: Development of agriculture and industry creates demand for transport, trade, storage and other services.
Answer: A
2.
Assertion: Intermediate goods should not be counted separately in GDP.
Reason: Their value is already included in the value of final goods.
Answer: A
3.
Assertion: The primary sector continues to employ a large share of India’s workers.
Reason: Enough jobs have not been created in the secondary and tertiary sectors to absorb all workers moving out of agriculture.
Answer: A
4.
Assertion: A person can be employed and still be underemployed.
Reason: Underemployment occurs when people work below their productive potential.
Answer: A
5.
Assertion: Organised-sector workers generally have greater job security.
Reason: Organised-sector workplaces operate under formal rules and regulations.
Answer: A
6.
Assertion: The private sector primarily focuses on social welfare rather than profit.
Reason: Private-sector activities are generally guided by the profit motive.
Answer: D
7.
Assertion: The government needs to provide some services.
Reason: Some essential activities require very large investment and may not be supplied affordably by private businesses.
Answer: A
8.
Assertion: The tertiary sector does not produce any useful economic output.
Reason: It provides services that support production and daily life.
Answer: D
C. Fill in the Blanks
1.
Activities directly dependent on natural resources belong to the ______ sector.
Answer: Primary
2.
The secondary sector is also called the ______ sector.
Answer: Industrial
3.
The tertiary sector is also known as the ______ sector.
Answer: Service
4.
Cotton is a ______ product, while cloth is a manufactured product.
Answer: Natural
5.
Goods used in producing final goods are called ______ goods.
Answer: Intermediate
6.
GDP includes the value of ______ goods and services.
Answer: Final
7.
GDP measures the value of final goods and services produced within a country during a particular ______.
Answer: Year
8.
The tertiary sector became the largest producing sector in India by ______ according to the chapter.
Answer: 2017–18
9.
When people appear to be working but some can leave without reducing output, it is called ______ unemployment.
Answer: Disguised
10.
The organised sector generally provides greater ______ of employment.
Answer: Security
11.
The public and private sectors are classified on the basis of ______.
Answer: Ownership
12.
The private sector is generally guided by the motive of earning ______.
Answer: Profit
13.
The government sector is also called the ______ sector.
Answer: Public
14.
The unorganised sector is characterised by small and ______ units.
Answer: Scattered
15.
Transport, banking and communication are examples of ______ sector activities.
Answer: Tertiary
D. True or False
1.
The primary sector directly depends on natural resources.
True
2.
The secondary sector produces only services.
False
3.
The tertiary sector supports the primary and secondary sectors.
True
4.
Intermediate goods should always be counted separately in GDP.
False
5.
GDP includes final goods and services produced within a country.
True
6.
The tertiary sector became India’s largest producing sector by 2017–18 according to the chapter.
True
7.
The primary sector stopped employing a significant number of workers.
False
8.
Disguised unemployment means that a person has absolutely no work.
False
9.
Organised-sector workers generally enjoy greater employment security.
True
10.
Workers in the unorganised sector always receive paid holidays and pensions.
False
11.
Public-sector activities are mainly controlled by private individuals.
False
12.
Private-sector activities generally have a profit motive.
True
E. Match the Following
Set 1
| Column A | Column B |
|---|---|
| 1. Agriculture | a. Tertiary |
| 2. Manufacturing | b. Primary |
| 3. Banking | c. Secondary |
Answer:
1–b, 2–c, 3–a
Set 2
| Column A | Column B |
|---|---|
| 1. GDP | a. Government ownership |
| 2. Organised sector | b. Final goods and services |
| 3. Public sector | c. Formal employment conditions |
| 4. Disguised unemployment | d. Underemployment |
Answer:
1–b, 2–c, 3–a, 4–d
Set 3
| Problem | Suitable measure |
|---|---|
| 1. Unirrigated land | a. Low-interest credit |
| 2. Debt burden | b. Canals |
| 3. Lack of processing industries | c. Agro-based mills |
| 4. Difficulty selling crops | d. Better marketing |
Answer:
1–b, 2–a, 3–c, 4–d
F. Very Short Answer Questions
1.
What is meant by a sector?
2.
Why is agriculture included in the primary sector?
3.
Give two examples of secondary-sector activities.
4.
Why is the tertiary sector called the service sector?
5.
What are intermediate goods?
6.
What are final goods?
7.
Define GDP.
8.
What is disguised unemployment?
9.
What is open unemployment?
10.
What is the organised sector?
11.
What is the unorganised sector?
12.
On what basis are public and private sectors classified?
13.
Give two examples of public-sector activities.
14.
What is the main motive of private-sector activities?
15.
Name two services that support agriculture.
G. Short Answer Questions — 2/3 Marks
1.
Differentiate between primary and secondary sectors with examples.
2.
Why are the three sectors of the economy interdependent?
3.
Why are only final goods and services counted while calculating GDP?
4.
Explain the difference between final goods and intermediate goods.
5.
Why has the tertiary sector become important in India?
6.
Why has employment not shifted from agriculture at the same rate as production?
7.
Explain disguised unemployment with a suitable example.
8.
How can irrigation help reduce underemployment in agriculture?
9.
How can rural industries generate employment?
10.
Mention three characteristics of the organised sector.
11.
Mention three problems faced by workers in the unorganised sector.
12.
Why do unorganised-sector workers require protection?
13.
Distinguish between public and private sectors.
14.
Why does the government provide services such as roads, railways and irrigation?
15.
How does the government support both farmers and consumers through food-grain procurement?
H. Long Answer Questions — 4/5 Marks
1.
Explain the three sectors of the Indian economy with suitable examples.
2.
Explain how the importance of different sectors changes as an economy develops.
3.
Discuss the reasons behind the rising importance of the tertiary sector in India.
4.
Explain the problem of disguised unemployment in agriculture and suggest measures to reduce it.
5.
Explain different ways in which employment can be increased in rural areas.
6.
Compare the working conditions in organised and unorganised sectors.
7.
Why is protection of workers in the unorganised sector necessary? Explain.
8.
Explain the difference between public and private sectors and discuss the role of the public sector in economic development.
9.
“Production has increased, but employment has not increased at the same rate.” Explain this statement with reference to India.
10.
Explain why government intervention is necessary in certain economic activities.
I. Case-Based Questions
Case 1: A Small Farm
Ravi’s family has a small agricultural plot. Six family members work on it throughout the year. However, the farm’s output would remain almost unchanged even if two members left and found other work.
Questions
1. What economic problem is illustrated here?
A. Inflation
B. Disguised unemployment
C. Industrialisation
D. Privatisation
Answer: B
2. Why can this situation be called disguised unemployment?
Answer: Because some workers are employed but their removal would not significantly reduce farm output.
3. Suggest one way of providing alternative employment to such workers.
Answer: Development of rural industries, services or other productive employment opportunities.
Case 2: From Cotton to Cloth
A farmer grows cotton. A factory purchases the cotton and converts it into yarn and cloth. Transport companies carry the cloth to markets, while banks provide financial services to businesses.
Questions
1. Cotton cultivation belongs to which sector?
Answer: Primary
2. Manufacturing cloth belongs to which sector?
Answer: Secondary
3. Transport and banking belong to which sector?
Answer: Tertiary
4. What does this example demonstrate?
Answer: It demonstrates the interdependence of the three sectors.
Case 3: Kanta and Kamal
Kanta works in an office with regular working hours, receives a monthly salary and has employment benefits. Kamal works as a daily-wage worker in a small shop. He receives wages only for days worked and has no formal appointment letter.
Questions
1. Which sector is Kanta most likely working in?
Answer: Organised sector
2. Which sector is Kamal working in?
Answer: Unorganised sector
3. Mention two differences between their employment conditions.
Answer: Kanta has regular employment and formal benefits, while Kamal has irregular employment and limited benefits.
4. Why does the unorganised sector require greater worker protection?
Answer: Workers often face low wages, irregular employment, weak job security and limited social benefits.
Case 4: Government and Public Services
A government constructs roads, bridges, irrigation projects and provides schools and hospitals. These activities require large investment and are intended to benefit society broadly.
Questions
1. Which sector is being described?
Answer: Public sector
2. Why might private businesses not provide all these services adequately?
Answer: Some require very large investment and may not be profitable or affordable if provided only through private business.
3. Name two public services from the case.
Answer: Education and healthcare.
(Roads/irrigation may also be accepted.)
J. Competency-Based Questions
1.
A country experiences rapid growth in service-sector production, but agriculture continues to employ a large proportion of its workers.
What economic problem may this indicate? Explain.
Answer: It may indicate inadequate creation of jobs outside agriculture and underemployment in agriculture.
2.
A biscuit company buys flour from a mill and uses it to manufacture biscuits.
Should the value of flour and biscuits both be fully counted while calculating GDP? Why?
Answer: No. Flour is an intermediate good and its value is already included in the value of the final biscuits. Counting both separately would cause double counting.
3.
A village receives irrigation, better roads, cold storage and affordable bank loans.
Explain how these developments can increase both income and employment.
Answer: Irrigation can increase agricultural production and allow additional crops. Roads and storage improve marketing. Affordable credit helps farmers purchase inputs. Processing, transport and trade can also create additional employment.
4.
A private company refuses to provide an essential service in a remote region because operating there would not be profitable.
Why might the government need to intervene?
Answer: The government may need to provide the service because essential services should be available to people even when private provision is not commercially attractive.
K. “Give Reason” Questions
1.
Why is the secondary sector called the industrial sector?
Answer: Because it involves manufacturing and processing activities associated with industries.
2.
Why is the tertiary sector called the service sector?
Answer: Because it mainly produces services rather than physical goods.
3.
Why should intermediate goods not be counted separately in GDP?
Answer: Their value is already included in the final product, so counting them separately causes double counting.
4.
Why is disguised unemployment common in agriculture?
Answer: Many people may depend on limited agricultural land, so more workers may be engaged than are actually necessary.
5.
Why are unorganised-sector workers vulnerable?
Answer: They often lack secure employment, regular wages, paid leave and other formal benefits.
6.
Why does the government undertake large infrastructure projects?
Answer: Such projects require large investment and are important for society, even when private businesses may not provide them adequately.
7.
Why has demand for tertiary services increased?
Answer: Economic development, growth of agriculture and industry, rising incomes and new technology have increased demand for services.
L. Differentiate Between
1. Primary Sector vs Secondary Sector
Write differences based on:
- Nature of activity
- Type of product
- Examples
2. Secondary Sector vs Tertiary Sector
Write differences based on:
- Production of goods/services
- Role in economy
- Examples
3. Organised Sector vs Unorganised Sector
Write differences based on:
- Registration
- Employment security
- Working hours
- Benefits
- Regulation
4. Public Sector vs Private Sector
Write differences based on:
- Ownership
- Main objective
- Role of government
- Examples
5. Open Unemployment vs Disguised Unemployment
Write differences based on:
- Whether the person has apparent employment
- Effect on production
- Example
6. Final Goods vs Intermediate Goods
Write differences based on:
- Purpose
- Whether used for further production
- Treatment in GDP calculation
M. HOTS / Thinking Questions
1.
If all farmers suddenly stopped producing crops, how would the secondary and tertiary sectors be affected?
2.
Can an activity belong to the tertiary sector even though it does not directly produce a physical product? Explain.
3.
Why might a country have a large service sector but still face unemployment?
4.
If two workers leave a small farm but farm output remains unchanged, what does this tell us about labour productivity?
5.
Why is increasing production alone not enough to solve unemployment?
6.
Why should employment and production both be considered when judging the performance of an economy?
7.
Can the private sector completely replace the public sector? Give reasons based on the chapter.
8.
Why might improving agriculture create employment outside agriculture as well?
N. Data/Graph-Based Questions
1.
The chapter compares the contribution of the three sectors in 1977–78 and 2017–18.
Answer:
a. Which sector was the largest producer in 1977–78?
b. Which sector became the largest producer by 2017–18?
c. Which sector experienced the greatest increase in production?
d. Did employment shift in exactly the same way?
Key answers:
a. Primary sector
b. Tertiary sector
c. Tertiary sector
d. No. The primary sector continued to employ the largest share of workers.
2.
The chapter states that industrial production increased by more than nine times during the period discussed, while industrial employment increased by around three times. Service-sector production increased by around fourteen times, while employment increased around five times.
Questions:
a. What does this comparison indicate?
b. Why is production growth not automatically equal to employment growth?
c. Which sector continued to employ the largest share of workers?
Key answer:
It indicates that output can grow much faster than employment, contributing to the persistence of underemployment, especially in agriculture.
O. One-Word / One-Term Questions
1.
Sector that uses natural resources directly?
Primary
2.
Sector that manufactures goods?
Secondary
3.
Sector that provides services?
Tertiary
4.
Value of final goods and services produced within a country in a year?
GDP
5.
Goods used to make final goods?
Intermediate goods
6.
Unemployment where excess workers can be removed without reducing output significantly?
Disguised unemployment
7.
Sector with formal employment rules and greater job security?
Organised sector
8.
Sector characterised by irregular employment and weaker regulation?
Unorganised sector
9.
Sector owned mainly by the government?
Public sector
10.
Sector generally guided by the profit motive?
Private sector
P. Imp Questions
If you have limited revision time, prioritise these:
- ⭐ Explain the three sectors of the economy with examples.
- ⭐ Why are the three sectors interdependent?
- ⭐ What is GDP? Why are only final goods and services counted?
- ⭐ Why has the tertiary sector become important in India?
- ⭐ Why does the primary sector continue to employ many workers?
- ⭐ Explain disguised unemployment with a suitable example.
- ⭐ Suggest measures to create more employment in rural areas.
- ⭐ Differentiate between organised and unorganised sectors.
- ⭐ Why do workers in the unorganised sector need protection?
- ⭐ Differentiate between public and private sectors.
- ⭐ Why does the government undertake activities that may not be profitable?
- ⭐ Explain the role of the public sector in economic development.
- ⭐ Distinguish between open and disguised unemployment.
- ⭐ Explain how irrigation, credit, storage and marketing can increase employment.
- ⭐ Explain the reasons for the growth of the tertiary sector.
Final Revision Formula
Nature of activity
→ Primary + Secondary + Tertiary
Employment conditions
→ Organised + Unorganised
Ownership
→ Public + Private
Big production issue
→ Tertiary sector grows strongly
Big employment issue
→ Agriculture still employs many → Underemployment
Major solution
→ Create productive jobs + improve infrastructure + protect workers