MCQs – Class 10 Economics Chapter 2: Sectors of the Indian Economy | CBSE | GPN

🧠 Multiple Choice Questions (MCQs) - Chapter 2: Sectors of the Indian Economy

This set of 30 questions evaluates your understanding of economic sectors (primary, secondary, tertiary), employment patterns, GDP contribution, and the organized/unorganized sectors in India as per the CBSE syllabus.

Standard MCQs (1 Mark Each)

Choose the single correct option for questions 1 to 15.

Which sector is also known as the agriculture and related sector?

(a) Primary sector

(b) Secondary sector

(c) Tertiary sector

(d) Quaternary sector

Answer: (a) Primary sector
Explanation: The primary sector involves activities that directly use natural resources. It includes agriculture, dairy, fishing, forestry, and mining - all activities connected to land and natural resources.
Manufacturing sector is associated with:

(a) Primary sector

(b) Secondary sector

(c) Tertiary sector

(d) Service sector

Answer: (b) Secondary sector
Explanation: The secondary sector covers activities in which natural products are changed into other forms through manufacturing. It includes industrial production, construction, and electricity generation.
Which sector has shown the highest growth in India's GDP in recent years?

(a) Primary sector

(b) Secondary sector

(c) Tertiary sector

(d) All sectors equally

Answer: (c) Tertiary sector
Explanation: The tertiary or service sector has become the largest producing sector in India, contributing more than 50% to GDP, surpassing both primary and secondary sectors.
The sector which provides support services to primary and secondary sectors is:

(a) Primary sector

(b) Secondary sector

(c) Tertiary sector

(d) Industrial sector

Answer: (c) Tertiary sector
Explanation: The tertiary sector provides services that support the production process. For example, transportation, banking, insurance, and communication services help both agriculture and industry.
Disguised unemployment occurs when:

(a) People are paid less than minimum wages

(b) People are working less than they are capable of

(c) People are employed but their contribution to production is zero

(d) People are working overtime

Answer: (c) People are employed but their contribution to production is zero
Explanation: In disguised unemployment, more people are engaged in an activity than required. If some people are withdrawn, production doesn't fall. Common in agricultural families where everyone works but not all are fully utilized.
Which sector absorbs the most labor force in India?

(a) Primary sector

(b) Secondary sector

(c) Tertiary sector

(d) Organized sector

Answer: (a) Primary sector
Explanation: Despite contributing less to GDP, the primary sector (mainly agriculture) employs about 44% of India's workforce (as per recent data), making it the largest employer.
NREGA (National Rural Employment Guarantee Act) aims to provide:

(a) 100 days of guaranteed wage employment in rural areas

(b) Free education to rural children

(c) Health insurance to rural workers

(d) Loans to farmers at low interest rates

Answer: (a) 100 days of guaranteed wage employment in rural areas
Explanation: Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
Which of the following is a characteristic of the organized sector?

(a) Small and scattered units

(b) Not registered with the government

(c) Follows government rules and regulations

(d) No job security

Answer: (c) Follows government rules and regulations
Explanation: The organized sector includes enterprises registered with the government and following its rules regarding employment, working conditions, minimum wages, etc. Workers have job security and social benefits.
GDP stands for:

(a) Gross Domestic Product

(b) Gross Development Product

(c) General Domestic Production

(d) Government Development Plan

Answer: (a) Gross Domestic Product
Explanation: GDP is the total value of all final goods and services produced within a country during a specific year. It indicates the size of an economy and its growth rate.
In India, the unorganized sector workers are mostly:

(a) Protected by labor laws

(b) Receiving social security benefits

(c) Exploited with low wages and poor working conditions

(d) Highly paid skilled workers

Answer: (c) Exploited with low wages and poor working conditions
Explanation: Unorganized sector includes small, scattered units not registered with the government. Workers here face low wages, no job security, no paid leave, and poor working conditions with little legal protection.
Which activity is not part of the tertiary sector?

(a) Banking

(b) Transportation

(c) Manufacturing

(d) Teaching

Answer: (c) Manufacturing
Explanation: Manufacturing belongs to the secondary sector. The tertiary sector provides services (banking, transport, teaching, etc.) rather than producing goods.
The problem of underemployment is most common in:

(a) The agricultural sector in rural areas

(b) IT sector in urban areas

(c) Government offices

(d) Large manufacturing industries

Answer: (a) The agricultural sector in rural areas
Explanation: Underemployment or disguised unemployment is most prevalent in agriculture where more people work on a piece of land than actually required, especially during non-harvest seasons.
What percentage of Indian workers are in the unorganized sector?

(a) About 20%

(b) About 50%

(c) About 80%

(d) About 10%

Answer: (c) About 80%
Explanation: Approximately 80% of Indian workers are employed in the unorganized sector, which includes small farms, casual laborers, street vendors, and home-based workers with little job security or benefits.
Public sector enterprises are owned and managed by:

(a) Private individuals

(b) Foreign companies

(c) The government

(d) Cooperative societies

Answer: (c) The government
Explanation: Public sector enterprises are owned, controlled, and managed by the government. Examples include Railways, BHEL, SAIL, and public sector banks.
The dual burden of work on women refers to:

(a) Working only at home

(b) Working outside and then doing household work

(c) Working in two different jobs

(d) Working only in the organized sector

Answer: (b) Working outside and then doing household work
Explanation: Women often face a double burden - they work for wages outside home (in fields, factories, offices) and also do most unpaid household work (cooking, cleaning, childcare) with little help from men.

Assertion-Reasoning Questions (1 Mark Each)

Directions: For questions 16 to 25, a statement of Assertion (A) is followed by a statement of Reason (R). Choose the correct option:

(a) Both A and R are true and R is the correct explanation of A

(b) Both A and R are true but R is NOT the correct explanation of A

(d) A is false but R is true

Assertion (A): The tertiary sector has become the most important sector in India.
Reason (R): It contributes the largest share to GDP and is growing faster than other sectors.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: The tertiary sector contributes over 50% to India's GDP and is expanding rapidly due to growth in services like IT, telecommunications, banking, and tourism, making it the most important sector as per R.
Assertion (A): There is a need to create more employment in the secondary and tertiary sectors.
Reason (R): The primary sector cannot absorb more workers due to disguised unemployment.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: Agriculture already has too many workers (disguised unemployment), so new jobs must come from manufacturing (secondary) and services (tertiary) to productively employ India's growing workforce, as R explains.
Assertion (A): Organized sector workers are better protected than unorganized sector workers.
Reason (R): Organized sector enterprises follow government rules regarding employment and working conditions.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: Workers in organized sector enjoy job security, fixed working hours, paid leave, and social security benefits because their employers must follow labor laws, as stated in R, which explains why they're better protected.
Assertion (A): MGNREGA helps reduce rural unemployment and poverty.
Reason (R): It provides 100 days of guaranteed wage employment to every rural household.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: By guaranteeing 100 days of employment (R), MGNREGA ensures income for rural poor during agricultural off-seasons, thus reducing unemployment and poverty as stated in A.
Assertion (A): GDP does not reflect the distribution of income among people.
Reason (R): GDP only measures total production, not who benefits from it.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: GDP indicates the size of an economy but not how its benefits are distributed. A high GDP country can still have high inequality, as R explains the limitation mentioned in A.
Assertion (A): The public sector plays a crucial role in providing basic services.
Reason (R): Private companies may not provide services like sanitation, water supply, and education in remote areas as they are not profitable.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: Private sector focuses on profit, so it often neglects unprofitable services in remote/poor areas. The public sector must provide these essential services, as R explains why it plays this crucial role.
Assertion (A): There is a shift of workers from primary to secondary and tertiary sectors in developed countries.
Reason (R): As countries develop, the importance of agriculture declines and that of industry and services increases.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: This is the historical pattern of development. As economies grow, agriculture becomes more productive with fewer workers, while manufacturing and services expand, creating new jobs as explained in R.
Assertion (A): Women workers often receive lower wages than men for similar work.
Reason (R): Women are generally less educated than men in India.
Answer: (c) A is true but R is false
Explanation: Assertion A is true - gender wage gap exists even for similar work. However, Reason R is not universally true and doesn't fully explain wage discrimination, which often persists regardless of education levels.
Assertion (A): The informal sector needs government protection.
Reason (R): Workers in the informal sector face exploitation and lack social security.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: Informal/unorganized sector workers (80% of workforce) need protection because they face low wages, unsafe conditions, and no benefits (R), which justifies government intervention as stated in A.
Assertion (A): Seasonal unemployment is common in agricultural sector.
Reason (R): Farming activities require intensive labor only during sowing and harvesting seasons.
Answer: (a) Both A and R are true and R is the correct explanation of A
Explanation: Agricultural work is seasonal - high demand during sowing/harvesting (R), but little work in between, leading to seasonal unemployment as stated in A.

Case-Based Questions (1 Mark Each)

For questions 26 to 30, read the case/source carefully and answer.

Case: "Raju works on a small farm with his family of 5 adults. The farm needs only 3 people for most work, but all 5 work there because they have no other employment. During harvest, they all work intensely for 2 months."
What type of unemployment does Raju's family face?

(a) Educated unemployment

(b) Disguised unemployment

(c) Cyclical unemployment

(d) Structural unemployment

Answer: (b) Disguised unemployment
Explanation: This is disguised unemployment - more people work than needed. If 2 family members left, farm output wouldn't fall. They appear employed but are actually underemployed for most of the year.
Case: Study the sectoral contribution to India's GDP (approximate figures):

Sector 1950-51 2020-21

Primary 55% 16%

Secondary 16% 25%

Tertiary 29% 59%

What major change does this data show about India's economy?

(a) Agriculture has become more important

(b) Industry's share has remained constant

(c) Service sector has become dominant

(d) All sectors have grown equally

Answer: (c) Service sector has become dominant
Explanation: The data shows a structural transformation: agriculture's share fell from 55% to 16%, while services grew from 29% to 59%, making India a service-sector dominated economy despite being a developing country.
Case: "In a village, several women work as agricultural laborers during harvest season. In off-seasons, they make papads and pickles at home to sell in local markets. They earn very little, have no fixed working hours, and no job security."
In which sector do these women work, and what are its characteristics?

(a) Organized sector - regular wages and job security

(b) Public sector - government benefits and pensions

(c) Unorganized sector - low income and no social security

(d) Corporate sector - high salaries and promotions

Answer: (c) Unorganized sector - low income and no social security
Explanation: These women work in the unorganized/informal sector characterized by low wages, irregular work, no fixed hours, no job security, and no social benefits - typical of much informal employment in India.
Case: "A factory worker earns ₹15,000 monthly with provident fund, medical benefits, and paid leave. A street vendor earns ₹10,000-12,000 monthly with no benefits, works 10-12 hours daily, and has no job security."
What does this comparison illustrate about India's economy?

(a) All workers enjoy equal benefits

(b) There is a divide between organized and unorganized sector workers

(c) Street vendors earn more than factory workers

(d) Working hours are same for all workers

Answer: (b) There is a divide between organized and unorganized sector workers
Explanation: This shows the stark contrast between organized sector (regular income, benefits, security) and unorganized sector (irregular income, no benefits, insecurity) - a major feature of India's dual economy.
Case: "Under MGNREGA, a village got funds to build a check dam. This created employment for 50 villagers for 3 months. The dam now provides irrigation for second crops, increasing agricultural productivity."
What are the multiple benefits of such employment schemes?

(a) Only provides temporary wages

(b) Creates rural infrastructure while providing employment, leading to long-term development

(c) Benefits only landless laborers

(d) Has no impact beyond wage payment

Answer: (b) Creates rural infrastructure while providing employment, leading to long-term development
Explanation: MGNREGA creates productive assets (check dams, roads, ponds) while providing employment. This dual benefit addresses immediate poverty through wages and creates long-term development through improved infrastructure.

Sector	1950-51	2020-21
Primary	55%	16%
Secondary	16%	25%
Tertiary	29%	59%

📘 Final Practice and Mastery Tips

Learn classifications: Memorize which activities belong to primary, secondary, and tertiary sectors with examples.

Understand paradoxes: Note that while tertiary sector contributes most to GDP, primary sector employs most people - understand why this happens.

Compare sectors: Practice comparing organized vs unorganized, public vs private sectors on various parameters.

Data analysis: Practice interpreting data on sectoral contributions and employment patterns.

Policy understanding: Understand government interventions like MGNREGA - their objectives, implementation, and impacts.

GuidedPathNoida.in