Economics

Sectors of Indian Economy

Multiple-Choice Questions (MCQs):

1. Year: 2024

Question: Which of the following activities comes under the

‘Primary sector’?

-
a) Mining -

b) Transport

c) Education -

d) Storage -
T
Answer: a) Mining -
2. Year: 2023

Question: Which one of the following is the main result of

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increasing irrigation facilities in the field of agriculture?

-
-

a) Increase in production
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b) Increase in productivity
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c) Change in cropping pattern

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d) Promote high yielding of crops

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Answer: c) Change in cropping pattern

 Year: 2024

Question: Define the Organised Sector and explain its working

conditions.

T Answer: The Organised Sector comprises enterprises or places of

work where the terms of employment are regular, and people have
a assured work. They are registered by the government and have to
=>
follow its rules and regulations, such as the Factories Act, Minimum
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Wages Act, and payment of gratuity, among others. Working
- -
conditions in this sector are formal, with fixed working hours, job
- -
security,
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and various benefits like paid leave, provident fund, and
- -
medical allowances.
Year: 2023
Mis
Question: What is disguised unemployment? 23
,

Answer: Disguised unemployment occurs when more people

are engaged in an activity than the number required. Even if
some workers are withdrawn, the production does not suffer.
This type of unemployment is commonly found in the
agricultural sector, where the work requires fewer hands than
-

are employed.
Year: 2023

Question: In which sector is seasonal and disguised

unemployment most prevalent in India?

Answer: Seasonal
-
and disguised unemployment are most
prevalent in the agriculture sector (Primary sector) in India.
--
2024

Question: What is another name for underemployment?

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Answer: Another name for underemployment is hidden

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unemployment.
2
2024 2
Question: Suggest
-
any&
one way to solve the
underemployment situation in rural areas in India.
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Answer: One way to address underemployment in rural areas

is by investing
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in infrastructure projects, such as constructing
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roads, canals, and bridges. This not only provides immediate

-

employment
-
opportunities but also improves connectivity,
leading to better access to markets and services, thereby
promoting economic activities.
2024
try
Question: Mention any one factor responsible for the growth of the
-
service sector in the Indian economy.
-
2
Answer: One factor responsible for the growth of the service sector in
India is the rising
-
income levels, which have increased the demand for
services like education,
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healthcare, tourism, and information technology.
 4-Mark Questions:
↑
Year: 2024

Question: Explain the difference between primary, secondary, and tertiary sectors using examples.

Answer: The economy is divided into three sectors based on the nature of activities:
• Primary Sector: This sector involves the extraction and utilization of natural resources.
>
-

Activities include agriculture,

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fishing, mining, and forestry. For example, a farmer growing wheat
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or a fisherman catching fish.
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• Secondary Sector: This sector pertains to the processing and manufacturing of goods. It takes
-raw materials from the primary sector and transforms them into finished products. Examples
- -
include manufacturing cars, textiles, and construction.
-
>
- • Tertiary Sector: Also known as the service sector, it provides services rather than goods. This
- -

includes transportation, banking, education, and healthcare. For instance, a teacher educating
-
-
students or a doctor treating patients.
-
 5-Mark Questions:

2024

Question: How does the public sector contribute to the economic

development of a nation?

Answer: The public sector plays a crucial role in a nation’s

- -

economic development through:

- • Infrastructure Development: The government invests in
building and maintaining infrastructure such as roads, bridges,
railways, and ports, facilitating trade and commerce.
② • Provision of Public Goods: It provides essential services like
education, healthcare, and sanitation, which are vital for human
-

development and improving the quality of life.

-
③ • Employment Generation: Public sector enterprises
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create job opportunities, reducing unemployment and

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contributing to income generation.

• Balanced Regional Development: The government
undertakes projects in underdeveloped regions to promote
- -

equitable growth and reduce regional disparities.

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⑤ • Regulation and Control: The public sector regulates

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critical industries to prevent monopolies, protect

-

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consumers, and ensure fair distribution of resources.
--
 Year: 2023

Question: Discuss the interdependence of all three sectors of the economy with
suitable examples.

Answer: The three sectors of the economy—primary, secondary, and tertiary—are

interdependent:
• Primary and Secondary: The secondary sector relies on the primary sector for raw
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materials. For example, the cotton textile industry depends on cotton produced by
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farmers.
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②• Secondary and Tertiary: Manufacturing units (secondary) need services like

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banking, insurance, and transportation (tertiary) to operate efficiently. For instance, a

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car manufacturer requires transportation services to deliver vehicles to dealers.
-• Primary and Tertiary: Farmers
- (primary) depend on tertiary
- services such as credit
facilities from banks, agricultural consultancy, and market information to enhance
productivity and sell their produce.
-

This interdependence ensures the smooth functioning and growth of the economy.
 Money and credit
Important Questions
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 Economics
Chapter: Development
1. MCQ (1 mark) 3
Question:
Which of the following is not included in the HDI (Human
Development Index)?
&
(a) Life expectancy at birth
(b) Education level
-
(c)
-
Income level
(d) Standard of living
e
-

Answer:
(d) Standard of living -
Question:
Which of the following is considered an indicator of
economic development?
(a) Per capita income
(b) Poverty rate
ans : 2)
&
(c) Health infrastructure
(d) All of the above
Answer:
(a) Per capita income
Question:
What is the main criterion used to measure Human
Development Index (HDI)?
(a) Income level
(b) Literacy rate
- Education
(c) Life expectancy
(d) All of the above -
Answer:
(d) All of the above
Question:
Which country ranked first in the Human Development
Index (HDI) in 2023?
(a) United States
(b) India
(c) Norway
(d) Canada
Answer:
&
(c) Norway
Question:
Which of the following is a development goal of rich
countries?
(a) Reducing poverty
-

(b) Equal income distribution

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(c) Technological advancement

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(d) Improved health and education

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Answer:
(c) Technological advancement ~
Question:
Which of the following countries has the highest Life
-

Expectancy at Birth?
(a) Nepal
(b) Bangladesh
(c) India
(d) Pakistan
Answer:
(b) Bangladesh -
Question:
Which of the following isINOT a goal of development?
(a) Increase in income
(b) Reducing inequality
(c) Higher literacy rates
(d) Better government control over private businesses
Answer:
(d) Better government control over private businesses
-
Question:
Human Development Index (HDI) includes all the
following factors EXCEPT:
(a) Income ~
(b) Education
--
(c) Life expectancy
(d) Unemployment rate
Answer:
(d) Unemployment rate
Y
Question:
Which of the following countries has the lowest HDI ranking in
2024?
(a) Norway Y
(b) United States X
(c) India
(d) Niger
Answer:
(d) Niger -
Question:
In the context of development, which of the following is an example
of a sustainable development goal?
(a) Decreasing industrial production
-
(b) Promoting renewable energy sources
-

(c) Increase in urbanization

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(d) Economic expansion without concern for the environment

-
Answer:

R
(b) Promoting renewable energy sources
Short & long answer type questions
2, 3 5
,

2-mark Question
Question:
Explain the term ‘Human Development’ as used by the United Nations
=
Development Program (UNDP).

Answer:
• Human Development refers to the process of enlarging people’s choices
and improving their well-being.
• It involves improving life expectancy, education, and income
-
-
levels to
ensure a better quality of life.
-
 3-mark Question
Question:
Why is per capita income an inadequate measure of development?
-

Answer:
- • Per capita income only measures
- income distribution and
doesn’t consider quality of life.
• It ignores social factors like education, healthcare, and
----
environmental sustainability.
T• It
-
fails to capture disparities in wealth and income distribution
-
within a country.
5-mark Question
Question:
Describe any five indicators of human development.

Answer:

E
1. Life Expectancy: It reflects the health status of a population and indicates the effectiveness of the
healthcare system.
2. Literacy Rate: Measures the education level and access to schooling in a country.
3. Per Capita Income: Indicates the average income of people and serves as a rough measure of
economic well-being.
4. Infant Mortality Rate: Represents the health conditions of infants and the effectiveness of
maternal care.
5. Access to Clean Water: Indicates the living conditions and access to basic services.
Short& long answer type questions

2-mark Question
Question:
Why do people have different notions of development?

Answer:
• People have different notions of development because their aspirations and
life situations vary.
• For example, a poor person may prioritize basic needs like food and shelter,
while a wealthier person may focus on luxury or higher education.
 3-mark Question
Question:
How is the level of economic development measured?

Answer:
• Economic development is measured using indicators
I like per
-
capita income, literacy rate, life expectancy,
-
G and income distribution.
-

3 .
• These indicators help determine the average living
standards of people and the distribution of wealth.
 5-mark Question
Question:
Explain the difference between economic growth and economic
development.

Answer:
• Economic Growth: Refers to the increase in the country’s output,
typically measured by- GDP or national
-
income, without considering
the distribution of wealth.
• Economic Development: Is a broader concept, involving
improvements in the quality of life, such as better education,
-

healthcare, social equity, and a reduction in poverty. It includes both

-- -

growth and the distribution of benefits to all people.

 GLØBÅLÏSÅTÏØÑ &
THË ÏÑDÏÅÑ ËÇØÑØMÝ
 ECONOMICS

PREVIOUS YEAR QUESTIONS

GLOBALIZATION AND THE INDIAN ECONOMY.

 Choose the correct option to fill the blank. (PYQ-2024) (Marks-1)

• Removing barriers or restrictions on business and trade set by the

Government is called as...............?

a) Disinvestment
(b) Special Economic Zones
~(c) Liberalisation ~

(d) Foreign Direct Investment.

-
• Answer :- Liberalisation.
-
Correct the following statement and rewrite it. (PYQ-2020) (Marks-1 Each)

1.Removing barriers or restrictions by the government is known as Globalisation.

>
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Answer :- Liberalisation
=

2.International Monetary Fund (IMF) is an organization whose aim is to liberalise

international trade.
--

S ↑
Answer :- World Trade Organisation
-
-'Globalisation is the process of rapid integration or interconnection between
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countries.' Explain the statement with examples.? (PYQ-2024) (Marks-4)

-

- -

• Answer :- Globalisation as the process where different countries become

-
-

more connected to each other, like pieces of a puzzle fitting together.

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[ ↑

• (i) Trade: One big part of globalisation is trade. Countries buy and sell
- -

stuff to each other more than ever before. For example, your phone might
- -
-

be made in one country, but the parts could come from several others.
- -
-

• G
(ii) Travel: Globalisation makes it easier for people to travel to other countries.
You can hop on a plane and fly to almost any corner of the world. This leads to
- - -

more cultural exchanges and opportunities for learning from different places.
• (iii) Communication: Thanks to technology, we can talk to someone on the other side of
-

the world in seconds. Emails, video calls and social media help us to connect with
- - -

people from different countries and cultures.

- -

S ↑
• (iv) Investment: Companies from one country might invest money in another country to
- - -

build factories or offices. This creates jobs and boosts economies in both places. For
-

- - - - -

instance, a car company might invest in a factory overseas to reach new markets.
[
&
• (v) Cultural Exchange: Globalisation isn't just about business. It's also about sharing
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ideas, music, movies and food. You can enjoy sushi in New York City or listen to K-pop
- -
-

- - -

in South America- all thanks to globalisation. So, globalisation is like the world
becoming smaller and more connected. Countries work together, trade with each other
and share ideas and cultures more easily than ever before.
-"Liberalisation of foreign trade and foreign investment policy have
- -

shown far reaching changes in India." Support the statement with

-

suitable arguments. (PYQ-2023) (Marks-4)

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• Answer :- (i) Competition would improve the performance of producers within the
country.
- -

• (ii) Barriers to foreign trade and foreign investment were removed to a large
-

extent. This meant that goods could be imported and exported easily.
- -

- - -
-

• (iii) Foreign companies could set up factories and offices to boost production.
- -
-

• (iv) It allows making decisions freely.

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• (v) The competition would improve the performance of producers within the
- -

country since they have to improve their quality.

-
-"Technology is the vital force in the modern form of globalisation."
-

Explain the statement with suitable examples.? (PYQ-2022) (Marks-4)

-
- -

-
-

• Answer :- (i) Rapid improvement in technology has been one major factor
that has stimulated the globalisation process.
- -

• (ii) For instance, the past fifty years have seen several improvements in the
transportation technology.
-

• (iii) Goods are placed in containers that can be loaded intact onto ships,
-

railways, planes and trucks.

-

- - -

• (iv) This has made much faster delivery of goods across long distances
possible at lower costs.
-

-
 -

• (v) Even more remarkable have been the developments in information and
communication technology.
-

• (vi) Technology in the areas of telecommunications, computers, internet has

-

been changing rapidly. Telecommunication facilities (telegraph, telephone

- -

including mobile phones,fax) are used to contact one another around the
-

world, to access information instantly and to communicate from remote

-

areas.

• (vii) This has been facilitated by satellite communication devices.

-
-Examine the impact of globalization in India.? (PYQ-2022) (Marks-4)
-

• Answer :- Impacts of globalization in India are as follows:

• Globalization improves the productivity and efficiency in the use of
- -

resources through the process of competition.

• Due to Globalization, growth rate of economy has gone up with an increase
-

in foreign investment and foreign technology in India.

-

• It allows the consumers to enjoy a wider range of goods and services at a

-

lower cost.
- -

• Globalisation and greater competition among producers-both local and foreign

-

producers-has been advantageous to consumers, particularly the well-off

-

sections in the urban areas.

-

• New job opportunities are created in IT sector. (vi) There is an expansion

unorganized sector.
 ....
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