Q 1 – Which of the following profession belongs to the Tertiary sector of economy ?
(A) Fisherman
(B) Farmer
(C) Factory worker
(D)Teacher
Ans. Option (D) is correct.
Q 2 – Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of the following statements about this sector is correct ?
(A) There are govt. bodies to supervise informal sector
(A) Money lenders ask for a reasonable rate of interest
(A) Cost of informal loans to the borrower is quite high
(A) Money lenders use fair means to get their money back.
Ans. Option (C) is correct
Q 3 – Production of a commodity, mostly through the natural process, is an activity in sector.
(A) primary
(B) secondary
(C) tertiary
(D) information technology
Ans. Option (A) is correct.
Q 4 – GDP is the total value of________ produced during a particular year.
(A) all goods and services
(B) all final goods and services
(C) all intermediate goods and services
(D) all intermediate and final goods and services
Ans. Option (B) is correct.
Q 5 – In terms of GDP the share of tertiary sector in 2013-14 is:
(A) between 20 to 30 percent
(B) between 30 to 40 percent
(C) between 50 to 60 percent
(D) between 60 to 70 percent
Ans. Option (D) is correct.
Q 6 – Economic Survey is published by the:
(B) Ministry of Statistics and Planning
(C) Ministry of Finance
(D) Ministry of Commerce and Trade
Ans. Option (C) is correct.
Q 7 – The sector which has emerged as the largest producing sector in India is:
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) None of the above
Ans. Option (C) is correct.
Q 8 – In our country, NREGA 2005 aims to provide to all those who are able to, and are willing to work, a minimum of –
(A) 200 days of employment in a year.
(A) 100 days of employment in a year.
(A) 300 days of employment in a year.
(A) 365 days of employment in a year.
Ans. Option (B) is Correct.
Q 9 – The sectors are classified into Public and Private sector on the basis of-
(A) employment conditions
(B) The nature of economic activity
(C) ownership of enterprises
(D) number of workers employed in the enterprise
Ans. Option (C) is correct.
Q 10 – Which sector of economy is the largest employer ?
(A) Industrial sector
(B) Agriculture sector
(C) Primary sector
(D) None of the above
Ans. Option (C) is correct.
Q 11 – Which one of the following occupations suffers from under employment ?
(A)Teacher
(B) Casual labour
(C) Bank employee
(D) Police constable
Ans. Option (B) is Correct.
Q 12 –
| Column I | Column II | ||
| (i) | Organised sector | (A) | Railways |
| (ii) | Public sector | (B) | Tata Iron and Steel Company Limited |
| (iii) | Private sector | (C) | Agriculture and farming |
| (iv) | Primary sector | (D) | Job security |
(A) (i)-(D), (ii)-(A), (iii) -(B), (iv)-(C)
(B) (i)-(D), (ii)-(C), (iii)-(A), (iv)-(B)
(C) (i)–(C), (ü)–(A)•(iii)–(B), (iv)–(l))
(D) (i) –(B), (ii)–(c ), (iii)–(D), (iv)–(A)
Ans. Option (A) is correct
Q 13 – Arrange the following in the correct sequence:
(i) Transporting cloth to the workshops
(ii) Sale in shops and showrooms
(iii) Spinning the yarn
(iv) Weaving of the fabric
Options.
(A) (i)-(iv)-(iii)-(ii)
(B) (iii)-(iv)-(i)-(ii)
(C) (iv)-(i)-(ii)-(iii)
(D) (iii)-(iv)-(ii)-(i)
Ans. Option (B) is correct.
Q 14 – Analyze the information given below, considering one of the following correct options:
Sushila is a worker in garment export industry of Agra. She gets facilities like health insurance provident fund, overtime at a double rate, medical leave, etc. She is working in :
(A) Tertiary sector
(B) Organised sector
(C) Unorganised sector
(D) None of the above
Ans. Option (B) is correct.
Q 15 – Analyze the information given below, considering one of the following correct options:
There are many activities that are undertaken by directly using natural resources. For example, the cultivation of cotton beekeeping dairy farming,etc.
(A) Tertiary sector
(B) Private sector
(C) Secondary sector
(D) Primary
Ans. Option (D) is correct.
Q 16 – Analyze the information given below, considering one of the following correct options:
Laxmi, owning about three hectares of unirrigated land dependent only on rain and growing crops like jowar and arhar. All seven members of her family work in the field throughout the year You will see that everyone is working, none remains idle, but in actual fact their labour effort gets divided. Each one is doing some work but no one is fully employed.
(A) Underemployment
(B) Disguised unemployment
(C) Seasonal unemployment
(D) Both (A) and (B).
Ans. Option (D) is correct.
Q 17 – Analyze the information given below, considering one of the following correct options:
Kamal works in rice mill. Jobs here are low-paid and often not regular. There is no provision for overtime paid leave holidays, etc. Employment is not secure. People can be asked to leave without any reason.
(A) Organised sector
(B) Private sector
(C) Unorganized sector
(D) Joint sector
Ans. Option (C) is correct.
Q 18 – Rakesh works in a automobile unit in Gurugram. But he does not get any facility like health insurance, medical leave provident fund, gratuity, etc.
(A) Public sector
(B) Organised sector
(C) Private sector
(D) Unorganised sector
Ans. Option (D) is correct.
Q 19 – Choose the incorrect option from the following :
| List-I | List-II | ||
| (A) | Courier | (i) | Tertiary Sector |
| (B) | Fisherman _ | (ii) | Primary Sector |
| (C) | Carpenter | (iii) | Primary Sector |
| (D) | Banker | (iv) | Tertiary Sector |
Ans. Option (C) is correct.
Q 20 – Find the incorrect option from the following:
(A) Secondary sector provides employment to a large number of people.
(B) Secondary sector is also called the service sector.
(C) Secondary sector uses mechanical power and modern use of labour.
(D) Secondary sector produces goods for local and international consumers.
Ans. Option (B) is correct.
Q 21 – Find the incorrect option from the following:
(A) MGNREGA has been implemented in 625 districts of India
(B) MGNREGA guarantees 200 days of assured work to the people who are able and in need of work
(C) If the government fails to provide unemployment allowances to the people.
(D) One third of the jobs are reserved for women.
Ans. Option (B) is correct
Q 22 – Find the incorrect option from the following:
(A) Underemployment means more people engaged in a job than needed.
(B) Underemployment is found only in agricultural sector
(C) Underemployment is also called disguised unemployment.
(D) Underemployment is also found in other sectors.
Ans. Option (B) is correct.
(i) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as.
(A) Both A and R are true and R is the correct explanation of A.
(A) Both A and R are true but R is NOT the correct explanation of A.
(A) A is true but R is false.
(A) A is false and R is true.
Q 23 – Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector.
Reason (R) : The value of final goods already includes the value of all the intermediate goods.
Ans. Option (A) is correct.
Q 24 – Assertion (A) : Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.
Reason (R) : All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.
Ans. Option (C) is correct
Q 25 – Assertion (A) : The development of agriculture and industry leads to the development of service sector.
Reason (R) : As the primary and secondarysectors develops, the demand for transport, storage structures, banks, insurance, etc., increases.
Ans. Option (A) is correct.
Q 26 – Assertion (A) : In India, over the forty years between 1973-74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
Reason (R) : Tertiary sector is the only organized sector in the economy so the government spends a lot of money for creating jobs in tertiary sector.
Ans. Option (C) is correct.
Q 27 – Assertion (A) : Reliance industries is a privat– owned firm.
Reason (R) : Government is a major stakeholder reliance industries.
Ans. Option (C) is correct.
Read the extract given below and answer the questions that follows:
There are many activities that are undertaken by directly using natural resources. When we produce a good by exploiting natural resources, it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. After Primary and Secondary, there is a third category of activities that falls under Tertiary sector and is different from the above two. These are activities that help in the development of the Primary and Secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process.
The various production activities in the Primary, Secondary and Tertiary sectors produce a very large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.
Answer the following MCQs by choosing the most appropriate option
Q 28 – Production of a commodity, mostly through ways of manufacturing is an activity of which sector?
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) None of the above
Ans. Option (B) is correct.
Q 29 – Which of the following is an example of Tertiary activities?
(A) Cotton
(B) Transport
(C) Sugar
(D) All of the above
Ans. Option (B) is correct.
Q 30 – Which of the following statement is not true?
(A) When we produce a good by exploiting natural resources, it is an activity of the Primary Sector
(B) The Secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing.
(C) Service sector is also called the industrial sector.
(D) None of the above.
Ans. Option (C) is correct.
Q 31 – Match the following list of occupations with their sectors:
| Occupation | Sector | ||
| 1. | Workers in wood factory | (i) | Primary |
| 2. | Dairy | (ii) | Secondary |
| 3. | Banking | (iii) | Tertiary |
(A) 1 — (i), 2 — (iii), 3 — (ii)
(B) 1 — (ii), 2 — (i), 3 — (iii)
(C) 1 — (iii), 2 — (ii), 3 — (i)
(D) None of the above.
Ans. Option (B) is correct.
Read the source given below and answer the questions that follows:
Rajesh works in a bank as a bank manager. He goes regularly to his bank and attends his bank services from 9.00 a.m. to 6:00 p.m. He gets his salary at the end of every month. In addition to the salary, he also gets provident fund as per the rules laid down by the government. He also gets earned leaves, sick leaves and casual leaves. Apart from leaves, he receives medical and other allowances. Rajesh does not go to bank on Saturdays and Sundays. This is a paid holiday. When he joined bank, he was given an appointment letter stating all the terms and conditions of work and his job is secure. Rain is Rajesh’s neighbour. He is a daily wage labourer in a nearby grocery shop. He goes to the shop at 7:00 am in the morning and works till 10:00 p.m. in the evening. He gets no other allowances apart from his wages. He is not paid for the days he does not work. He has therefore no leave or paid holidays. Nor was he given any formal appointment letter saying that he has been employed in the shop. He can be asked to leave anytime by his employer if his job is not found satisfactory. His job is not secure. Rajesh works in the organized sector whereas Ram works in an unorganized sector.
Answer the following MCQs by choosing the most appropriate option
Q 32 – Which of the following statement is not true with respect to organized sector?
(A) Organized sector is registered by the government
(B) In organized sector the workers enjoy the security of employment
(C) In organized sector workers does not get several benefits
(D) All of the above
Ans. Option (C) is correct
Q 33 – Which of the following statements is an example of unorganised sector activities?
(A) A teacher taking classes in a school
(B) A daily wage labourer working under a contractor
(C) A doctor in a hospital treating a patient
(D)A factory worker going to work in a big factory
Ans. Option (B) is correct.
Q 34 – In the rural areas, the unorganized sector mostly comprises of
(A) Landless agricultural labourers
(B) Small and marginal farmers
(C) Sharecroppers and artisans
(D) All of the above
Ans. Option (D) is correct.
Q 35 – In the urban areas, unorganised sector comprises mainly of
(A) Workers in small-scale industry
(B) Casual workers in construction
(C) Both (A) and (B)
(D) None of the above
Ans. Option (C) is correct.
Read the source given below and answer the questions that follows:
With so many thousands of goods and services produced, you might think this is an impossible task! Not only would the task be enormous, you might also wonder how we can add up cars and computers and nails and furniture. It won’t make sense!!!
You are right in thinking so. To get around this problem, economists suggest that the values of goods and services should be used rather than adding up the actual numbers. For example, if 10,000 kgs of wheat is sold at Rs 8 per kg, the value of wheat will be Rs 80,000. The value of 5000 coconuts at Rs 10 per coconut will be Rs 50,000. Similarly, the value of goods and services in the three sectors are calculated, and then added up. Remember, there is one precaution one has to take. Not every good (or service) that is produced and sold needs to be counted. It makes sense only to include the final goods and services. Take, for instance, a farmer who sells wheat to a flour mill for Rs 8 per kg. The mill grinds the wheat and sells the flour to a biscuit company for Rs 10 per kg. The biscuit company uses the flour and things such as sugar and oil to make four packets of biscuits. It sells biscuits in the market to the consumers for Rs 60 (Rs 15 per packet). Biscuits are the final goods, i.e., goods that reach the consumers.
Why are only ‘final goods and services’ counted? In contrast to final goods, goods such as wheat and the wheat flour in this example are intermediate goods. Intermediate goods are used up in producing final goods and services. The value of final goods already includes the value of all the intermediate goods that are used in making the final good. Hence, the value of Rs 60 for the biscuits (final good) already includes the value of flour (Rs 10). Similarly, the value of all other intermediate goods would have been included. To count the value of the flour and wheat separately is therefore not correct because then we would be counting the value of the same things a number of times. First as wheat, then as flour and finally as biscuits.
The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.
In India, the mammoth task of measuring GDP is undertaken by a central government ministry. This Ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP.
Answer the following MCQs by choosing the most appropriate
Q 36 – What method does the Economists suggest in
counting the various goods and services?
(A) Value of goods and services should be used rather than adding up the actual numbers.
(B) Values of actual numbers to be used.
(C) Values of intermediate goods to be used.
(D) None of the Above
Ans. Option (A) is correct
Q 37 – What is the role of Central government Ministra in measuring GDP?
(A) Collects information relating to total volunv of goods and services and their prices and ther estimates the GDP.
(B) Collects targets relating to total volume cc goods and services and their prices and ther defines the GDP.
(C) Collects estimates relating to total volume o: goods and services and their prices and ther. sums up the GDP.
(D) Collects information relating to GDP ther estimates the total value of goods and services
Ans. Option (A) is correct
Q 38 – Why not every good (or service) that is produced and sold needs to be counted?
(A) Because the value of intermediate goods only includes the value of all the intermediate goods
(B) Because the value of final goods already includes the value of all the intermediate goods.
(C) Because the value of intermediate goods already includes the value of all the final goods.
(D) Because the valueof services goods already includes the value of all the intermediate goods.
Ans. Option (B) is correct.
Q 39 – Give an example of intermediate goods.
(A) Wheat
(B) Flour
(C) Bread
(D) Biscuit
Ans. Option (A) is correct.