Chapter Exam

Chapter 19: Sectors of the Indian Economy — Online MCQ Test

Q: Which of the following activities belongs to the primary sector?

Answer: A. Cultivation of wheat — The primary sector includes activities that directly use natural resources, such as farming, fishing, mining and forestry.

Q: The secondary sector is also known as the ______ sector.

Answer: B. Industrial — The secondary sector converts raw materials into finished goods and is therefore called the industrial sector.

Q: Which sector provides services rather than producing goods directly?

Answer: C. Tertiary sector — The tertiary sector includes services like transport, banking, education, health and communication.

Q: GDP stands for:

Answer: A. Gross Domestic Product — GDP means Gross Domestic Product, which is the value of final goods and services produced within a country in a year.

Q: A farmer grows cotton, a factory converts it into cloth, and a shopkeeper sells the cloth. The factory activity belongs to which sector?

Answer: B. Secondary sector — The factory converts raw cotton into cloth, so it is part of the secondary or industrial sector.

Q: Why are only final goods and services counted while calculating GDP?

Answer: B. To avoid double counting — Intermediate goods are already included in the value of final goods, so counting them separately would lead to double counting.

Q: A small farmer borrows money to buy a pump set. Better irrigation allows him to grow a second crop and employ more workers. Which problem is this most directly helping to reduce?

Answer: A. Disguised unemployment in rural areas — Improved irrigation can create additional work and raise productivity, reducing underemployment in rural areas.

Q: A farmer sells wheat to a flour mill for ₹100. The mill sells flour to a bakery for ₹150. The bakery sells bread to consumers for ₹250. What is the value of final goods counted in GDP?

Answer: C. ₹250 — Only the final good, bread sold to consumers, is counted in GDP. Counting wheat and flour separately would cause double counting.

Q: A manufacturer buys steel worth ₹1 lakh and uses it to make machinery worth ₹3 lakh. If both steel and machinery are counted separately in GDP, what error will occur?

Answer: B. Double counting — Steel is an intermediate good used in making machinery. Counting both the steel and the final machinery separately would count the value of steel twice.

SOCIAL SCIENCE · Grade 10 · CBSE(NCERT)

Practice Chapter 19: Sectors of the Indian Economy with a free chapter-wise online MCQ test for CBSE(NCERT) Grade 10 SOCIAL SCIENCE. This chapter covers: Primary sector Secondary sector Tertiary sector Organised sector Unorganised sector Public sector Private sector Employment GDP. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 19: Sectors of the Indian Economy — Important Questions & Answers (FAQ)

Frequently asked questions from CBSE(NCERT) Grade 10 SOCIAL SCIENCE — Chapter 19: Sectors of the Indian Economy, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which of the following activities belongs to the primary sector?

A. Cultivation of wheat ✓
B. Manufacturing of cloth
C. Banking services
D. Teaching in a school

Answer: A. Cultivation of wheat
The primary sector includes activities that directly use natural resources, such as farming, fishing, mining and forestry.

The secondary sector is also known as the ______ sector.

A. Agricultural
B. Industrial ✓
C. Service
D. Public

Answer: B. Industrial
The secondary sector converts raw materials into finished goods and is therefore called the industrial sector.

Which sector provides services rather than producing goods directly?

A. Primary sector
B. Secondary sector
C. Tertiary sector ✓
D. Agricultural sector

Answer: C. Tertiary sector
The tertiary sector includes services like transport, banking, education, health and communication.

GDP stands for:

A. Gross Domestic Product ✓
B. General Domestic Production
C. Gross Development Plan
D. Government Domestic Product

Answer: A. Gross Domestic Product
GDP means Gross Domestic Product, which is the value of final goods and services produced within a country in a year.

A farmer grows cotton, a factory converts it into cloth, and a shopkeeper sells the cloth. The factory activity belongs to which sector?

A. Primary sector
B. Secondary sector ✓
C. Tertiary sector
D. Unorganised sector only

Answer: B. Secondary sector
The factory converts raw cotton into cloth, so it is part of the secondary or industrial sector.

Why are only final goods and services counted while calculating GDP?

A. Because intermediate goods are not useful
B. To avoid double counting ✓
C. Because final goods are always cheaper
D. To include only imported goods

Answer: B. To avoid double counting
Intermediate goods are already included in the value of final goods, so counting them separately would lead to double counting.

A small farmer borrows money to buy a pump set. Better irrigation allows him to grow a second crop and employ more workers. Which problem is this most directly helping to reduce?

A. Disguised unemployment in rural areas ✓
B. Overproduction of final goods
C. Growth of the public sector
D. Double counting in GDP

Answer: A. Disguised unemployment in rural areas
Improved irrigation can create additional work and raise productivity, reducing underemployment in rural areas.

A farmer sells wheat to a flour mill for ₹100. The mill sells flour to a bakery for ₹150. The bakery sells bread to consumers for ₹250. What is the value of final goods counted in GDP?

A. ₹100
B. ₹150
C. ₹250 ✓
D. ₹500

Answer: C. ₹250
Only the final good, bread sold to consumers, is counted in GDP. Counting wheat and flour separately would cause double counting.

A manufacturer buys steel worth ₹1 lakh and uses it to make machinery worth ₹3 lakh. If both steel and machinery are counted separately in GDP, what error will occur?

A. Underestimation of GDP
B. Double counting ✓
C. Exclusion of final goods
D. Counting only services

Answer: B. Double counting
Steel is an intermediate good used in making machinery. Counting both the steel and the final machinery separately would count the value of steel twice.

The tertiary sector has become the largest producing sector in India, yet it has not shifted all workers out of agriculture. Which is the most appropriate explanation?

A. All service sector jobs require no skills and absorb everyone easily
B. Many people remain dependent on agriculture due to lack of enough alternative employment opportunities ✓
C. Agriculture has the highest GDP share in India
D. The secondary sector is not part of the Indian economy

Answer: B. Many people remain dependent on agriculture due to lack of enough alternative employment opportunities
The service sector has grown in output, but many people still remain in agriculture because sufficient productive jobs have not been created in other sectors.

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