Sectors of Indian Economy MCQs for class 10 Economics given here are followed by their answers at the end of the MCQs exercise. Attempt first and then check the answers. Now, evaluate your preparation with these MCQs. Click here for more study materials on class 10 Economics.
MCQs: Sectors of Indian Economy
Read the questions and choose the correct options as answers.
1. Which of the following groups fall in the service sector?
- A. Teachers, doctors, lawyers, cobblers
- B. Bank officers, industrial workers, weavers, tea garden workers
- C. Call centre employees, farmers, tailors
- D. Peasants, industrialists, mill workers, administrative staff
2. In the question given below, there are two statements marked as Assertion (A) and Reason
(R). Read the statements and chose the correct option.
Assertion (A): Not every good or service that is produced and sold should be counted to determine the total production in each sector.
Reason (R): The value of final goods already includes the value of all the intermediate goods that go into making it.
Options:
- A. A is true, but R is untrue.
- B. Both A and R are true, and R is the correct explanation of A.
- C. Both A and R are true, but R is not the correct explanation of A.
- D. A is untrue, but R is true.
3. Which of the following professions belongs to the tertiary sector of the economy?
- A. Fisherman
- B. Farmer
- C. Teacher
- D. Factory worker
4. Arrange the following economic activities in the correct sequence.
i. Transporting cloth to the workshops
ii. Sale in shops and showrooms
iii. Spinning the yarn
iv. Weaving the fabric
Select the correct answer.
- A. iii –iv—i–ii
- B. i–iv–iii—ii
- C. iii—iv–ii—i
- D. iv—i–ii–iii
5. Which sector alone can create 20 lakh jobs, according to the study conducted by the Planning Commission (now known as NITI Aayog)?
- A. Education
- B. Medical
- C. Agriculture
- D. Banking
6. When five persons do the work which can be easily done by two, it is known as underemployment or______________
- A. unemployment
- B. urban unemployment
- C. rural unemployment
- D. disguised unemployment
7. In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and chose the correct option.
Assertion (A): Workers in the agricultural sector are underemployed.
Reason (R): More than half of the workers in the country are working in the agricultural sector, producing only about one-fourth of the GDP.
- A. Both A and R are true, but R is not the correct explanation of A.
- B. A is true, but R is untrue.
- C. Both A and R are true, and R is the correct explanation of A.
- D. A is untrue, but R is true
8. In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and chose the correct option.
Assertion (A): It is common to find organised sector enterprises in the unorganised sector.
Reason (R): Many organised sector enterprises adopt different strategies to evade taxes and escape laws that protect labourers.
- A. Both A and R are true, but R is not the correct explanation of A.
- B. A is true, but R is untrue.
- C. Both A and R are true, and R is the correct explanation of A.
- D. A is untrue, but R is true.
9. Who out of the following do not classify as unorganised sector workers in urban areas?
- A. vendors
- B. Street
- C. Farmers
- D. Headload workers
- E. Ragpickers
10. Which of the following statements is untrue with regards to workers in the organised sector?
- A. They are not paid daily by the hours or days they work for
- B. They are expected to work only a fixed number of hours.
- C. If they work more, they have to be paid overtime.
- D. They are not entitled to receive benefits from employers.
11. Economic enterprises are divided into public and private sectors based on which three of the following criteria?
- A. Employment conditions
- B. Company ownership
- C. People’s support for a sector
- D. Valuation of the business chain
- E. Nature of economic activity
12. Which three of the following statements is true with regards to the public sector in India?
- A. Government owns most of the assets and provides all the services.
- B. Railways or post office is an example of the public sector.
- C. Government raises money through taxes to finance the services it provides.
- D. Several things are needed by society which the public sector does not provide at a reasonable cost.
- E. Activities in the public sector are guided by the motive to earn profits.
13. In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and chose the correct option.
Assertion (A): The private sector may not continue their production or business unless government encourages it.
Reason (R): It is the duty of the government to take care of the poorest and most marginalised regions of the country through increased spending in these areas.
- A. Both A and R are true, but R is not the correct explanation of A.
- B. Both A and R are true, and R is the correct explanation of A.
- C. A is untrue, but R is true.
- D. A is true, but R is untrue.
14. What precaution should be taken while calculating the total production in each sector?
- A. Only value of final goods and service should be calculated.
- B. Every good and service sold and bought should be calculated.
- C. The value of the intermediate goods should be counted.
- D. Actual number of goods produced should be counted.
15. The economic sector that involves the process of manufacturing is the ____________
- A. Secondary sector
- B. None of the above
- C. Primary sector
- D. Tertiary sector
Answers:
- A. Teachers, doctors, lawyers, cobblers. The tertiary sector’s activities focus on providing services rather than producing goods, which is why it’s also known as the service sector. Teachers, doctors, lawyers, cobblers fall into the service sector because they provide their services.
- A. Both A and R are true, and R is the correct explanation of A. Not every good produced and sold should be counted in total production because the value of final goods and services includes the value of intermediate goods that go into making them.
- C. Teacher Professions that provide services come under the tertiary sector.
- A. Spinning the yarn –weaving the fabric – transporting cloth to the workshops – sale in shops and showrooms
- A. Education A study conducted by the erstwhile Planning Commission (now known as NITI Aayog) estimates that nearly 20 lakh jobs can be created in the education sector alone.
- D. disguised unemployment Since it appears that all five persons are employed but they are not performing to their full potential or capacity, it is disguised unemployment.
- C. Both A and R are true, and R is the correct explanation of A. There are more people in agriculture than are necessary, because fewer workers can maintain the same production. In other words, workers in the agricultural sector are underemployed.
- C. Both A and R are true, and R is the correct explanation of A. Many organised sector firms try to avoid taxes and government regulations by setting up enterprises in the unorganised sector. Thus they avoid rules that protect workers, and as a result, workers are frequently exploited and underpaid.
- C. Farmers are not classified as unorganised sector workers in cities because they are part of the rural unorganised sector.
- D. Organised sector covers those enterprises or places of work where the terms of employment are regular and the workers get several benefits from the employers.
- B.
- A, B, C
- A. Both A and R are true, but R is not the correct explanation of A. Many economic activities and facilities necessitate enormous sum of money, which the private sector cannot raise. As a result, there are some things that the government must undertake, or the private sector will be unable to continue producing or conducting business.
- A. Only value of final goods and service should be calculated as it already includes the value of the intermediary goods and services used to make the final product.
- A. Secondary sector Natural products are processed in manufacturing industries. This is the secondary sector.
