Class 10 Economics Chapter 2 MCQ

This article is determined to provide you with Class 10 Economics Chapter 2 MCQ. These MCQs can be very helpful for your class 10 board exams. Use these to score well on your exams and achieve the best possible marks. I scored 98 in my Class 10 social science exams, and below I have provided the study materials for Class 10 economics that I personally used for my preparation of Class 10 Economics Chapter 1 MCQ. If you use these Sectors of the Indian Economy Important MCQs, you can also get good marks.

Sectors of the Indian Economy

Table of Contents

1. When we produce a good by exploiting natural resources, it is an activity of which sector? (a) Secondary sector (b) Tertiary sector (c) Primary sector (d) Service sector

Answer: (c) Primary sector

2. The primary sector is also called the ‘agriculture and related sector’ because:

(a) It is the first sector to be discovered. (b) It is related to all other sectors. (c) It forms the base for all other products we subsequently make.

(d) Most people are employed in this sector.

Answer: (c) It forms the base for all other products we subsequently make.

3. Activities in which natural products are changed into other forms through manufacturing are covered under which sector?

(a) Primary sector (b) Secondary sector (c) Tertiary sector (d) Unorganised sector

Answer: (b) Secondary sector

4. Using sugarcane as a raw material to make sugar or gur is an activity of the:

(a) Primary sector (b) Secondary sector (c) Tertiary sector (d) Public sector

Answer: (b) Secondary sector

5. Which of the following is an example of a tertiary sector activity?

(a) Cultivation of cotton (b) Weaving cloth from yarn (c) Transporting goods by trucks (d) Converting earth into bricks

Answer: (c) Transporting goods by trucks

6. Since the tertiary sector activities generate services rather than goods, it is also called the:

(a) Industrial sector (b) Agriculture and related sector (c) Service sector (d) Organised sector

Answer: (c) Service sector

7. Why are only the values of ‘final goods and services’ counted when calculating GDP?

(a) It is easier to count final goods. (b) Intermediate goods are of poor quality. (c) The value of final goods already includes the value of all intermediate goods.

(d) Intermediate goods are not sold in the market. Answer: (c) The value of final goods already includes the value of all intermediate goods.

8. What is the Gross Domestic Product (GDP) of a country?

(a) The value of all intermediate goods and services produced within a country during a particular year.

(b) The value of all goods and services, including intermediate ones, produced within a country during a particular year.

(d) The value of all final goods and services produced within a country during a particular year.

Answer: (d) The value of all final goods and services produced within a country during a particular year.

9. In the initial stages of development, which sector was the most important sector of economic activity in now-developed countries?

(a) Secondary sector (b) Tertiary sector (c) Primary sector (d) Service sector

Answer: (c) Primary sector

10. In the past 100 years, what shift has been observed in developed countries?

(a) From tertiary to secondary sector (b) From secondary to primary sector (c) From primary to tertiary sector (d) From secondary to tertiary sector

Answer: (d) From secondary to tertiary sector

11. According to Graph 1, which was the largest producing sector in India in the year 1977-78?

(a) Secondary sector (b) Tertiary sector (c) Primary sector (d) All were equal

Answer: (c) Primary sector

12. By the year 2017-18, which sector emerged as the largest producing sector in India?

(a) Primary sector (b) Secondary sector (c) Tertiary sector (d) Industrial sector

Answer: (c) Tertiary sector

13. Which of the following is considered a ‘basic service’ for which the government has to take responsibility in a developing country?

(a) Private schools and hospitals (b) Tourism and shopping malls (c) Hospitals, educational institutions, and police stations.

(d) Internet cafes and call centres.

Answer: (c) Hospitals, educational institutions, and police stations.

14. According to Graph 3, which sector continues to be the largest employer in India even in 2017-18?

(a) Secondary sector (b) Tertiary sector (c) Primary sector (d) Service sector

Answer: (c) Primary sector

15. What is the situation called when people are apparently working but are made to work less than their potential?

(a) Open unemployment (b) Seasonal unemployment (c) Underemployment (d) Frictional unemployment

Answer: (c) Underemployment

16. Underemployment hidden in contrast to someone who does not have a job is also known as:

(a) Visible unemployment (b) Disguised unemployment (c) Cyclical unemployment (d) Structural unemployment

Answer: (b) Disguised unemployment

17. A study by the erstwhile Planning Commission estimated that nearly 20 lakh jobs can be created in which sector alone?

(a) Tourism sector (b) Health sector (c) IT sector (d) Education sector

Answer: (d) Education sector

18. What is the full form of MGNREGA 2005? (a) Mahatma Gandhi National Rural Education Guarantee Act (b) Mahatma Gandhi National Rural Employment Guarantee Act (c) Mahatma Gandhi National Regional Employment Guarantee Act (d) Mahatma Gandhi New Rural Employment Guarantee Act

Answer: (b) Mahatma Gandhi National Rural Employment Guarantee Act

19. Under MGNREGA 2005, how many days of employment in a year are guaranteed by the government for those in need in rural areas?

(a) 50 days (b) 100 days (c) 150 days (d) 200 days

Answer: (b) 100 days

20. Which sector covers enterprises where the terms of employment are regular and people have assured work?

(a) Primary sector (b) Unorganised sector (c) Private sector (d) Organised sector

Answer: (d) Organised sector

21. In the story of Kanta and Kamal, Kanta works in the organised sector. Which of the following is a benefit she receives?

(a) She can be asked to leave anytime. (b) She has no paid holidays. (c) She gets a provident fund as per government rules.

(d) She gets no allowances apart from her wages

. Answer: (c) She gets a provident fund as per government rules.

22. The unorganised sector is characterized by:

(a) High-paid and regular jobs. (b) Secure employment with many benefits. (c) Small and scattered units largely outside the control of the government.

(d) Formal processes and procedures.

Answer: (c) Small and scattered units largely outside the control of the government.

23. Nearly 80 percent of rural households in India are in which farmer category?

(a) Large farmers (b) Rich farmers (c) Small and marginal farmers (d) Farmers with no land

Answer: (c) Small and marginal farmers

24. The classification of sectors into public and private is based on:

(a) The nature of the economic activity. (b) The number of workers employed. (c) Who owns assets and is responsible for the delivery of services.

(d) The location of the enterprise.

Answer: (c) Who owns assets and is responsible for the delivery of services.

25. In which sector does the government own most of the assets and provide all the services?

(a) Private sector (b) Public sector (c) Organised sector (d) Unorganised sector

Answer: (b) Public sector

26. The main motive of activities in the private sector is to:

(a) Provide social welfare. (b) Generate employment. (c) Earn profits.

(d) Support the government. Answer: (c) Earn profits.

27. Companies like TISCO or Reliance Industries Limited are examples of which sector?

(a) Public sector (b) Private sector (c) Organised sector (d) Tertiary sector

Answer: (b) Private sector

28. Why does the government have to undertake heavy spending on services like roads, railways, and electricity?

(a) The private sector provides these services at a very low cost.

(b) These are needed by society as a whole, but the private sector will not provide them at a reasonable cost.

(d) These services are not important for the economy.

Answer: (b) These are needed by society as a whole, but the private sector will not provide them at a reasonable cost.

29. The government’s duty to provide quality elementary education and health facilities for all is part of its responsibility for:

(a) Economic development only (b) Human development (c) Industrial growth (d) Private sector growth

Answer: (b) Human development

30. While production in the service sector rose by 14 times, employment in the service sector rose by only about:

(a) Two times (b) Three times (c) Five times (d) Ten times

Answer: (c) Five times

31. What do economic activities grouped into primary, secondary, and tertiary sectors have in common as a classification criterion?

(a) Employment conditions (b) Ownership of enterprises (c) The nature of the activity (d) The location of the activity

Answer: (c) The nature of the activity

32. The employment data used in the chapter is based on five-yearly surveys conducted by which organization?

a) World Bank (b) Reserve Bank of India (c) NITI Aayog (d) National Statistical Office (NSO), formerly NSSO.

Answer: (d) National Statistical Office (NSO), formerly NSSO.

33. What kind of goods are wheat and wheat flour in the example of making biscuits? (a) Final goods (b) Intermediate goods (c) Tertiary goods (d) Service goods

Answer: (b) Intermediate goods

34. Services based on information technology such as internet cafes and call centers fall under which sector?

(a) Primary sector (b) Secondary sector (c) Tertiary sector (d) Public sector

Answer: (c) Tertiary sector

35. If a sugar mill has to shut down because farmers refuse to sell it sugarcane, it shows that the:

(a) Primary sector depends on the tertiary sector. (b) Secondary sector depends on the primary sector.

Answer: (b) Secondary sector depends on the primary sector.

36. While the share of the three sectors in GVA has changed, a similar shift has not taken place in:

(a) Production (b) Employment (c) GDP (d) Income

Answer: (b) Employment

37. More than half of the workers in the country are working in the primary sector, but they produce only about: (a) Half of the GVA (b) One-third of the GVA (c) One-sixth of the GVA (d) Three-fourths of the GVA

Answer: (c) One-sixth of the GVA

38. The government buying wheat and rice from farmers at a ‘fair price’ and selling it at a lower price through ration shops is a way it supports: (a) Only farmers (b) Only consumers (c) Both farmers and consumers (d) Only the private sector

Answer: (c) Both farmers and consumers

39. Providing cheap agricultural credit to farmers is a way to:

(a) Reduce the problem of underemployment. (b) Improve farming and create employment.

Answer: (b) Improve farming and create employment.

40. What is the former name of NITI Aayog?

(a) Finance Commission (b) Planning Commission (c) National Statistical Office (d) Economic Survey

Answer: (b) Planning Commission

41. The unorganised sector in rural areas mostly comprises of:

(a) Workers in large factories. (b) Government employees. (c) Landless agricultural labourers, small and marginal farmers.

(d) People with regular and secure jobs.

Answer: (c) Landless agricultural labourers, small and marginal farmers.

42. Which groups often face social discrimination in addition to irregular and low-paid work in the unorganised sector?

(a) Highly skilled workers. (b) Workers from scheduled castes, tribes, and backward communities.

Answer: (b) Workers from scheduled castes, tribes, and backward communities.

43. The purpose of the public sector is:

(a) Only to earn profits. (b) To compete with the private sector.

(d) To own all the assets in the country.

Answer: (c) Not just to earn profits but also provide essential services.

44. If the government fails to provide employment under MGNREGA 2005, what must it do?

(a) Provide skill training to the people. (b) Give unemployment allowances to the people.

Answer: (b) Give unemployment allowances to the people.

45. As income levels rise, people start demanding more services like:

(a) Basic health and education. (b) Transport and storage. (c) Tourism, shopping, and private hospitals.

(d) Banking and insurance.

Answer: (c) Tourism, shopping, and private hospitals.

46. What is the infant mortality rate of Madhya Pradesh, which is higher than some of the poorest regions of the world?

(a) 36 (b) 43 (c) 25 (d) 18

Answer: (b) 43

47. When an economy’s sectors are classified as organised and unorganised, the criterion used is: (a) Nature of activity (b) Ownership of assets (c) Employment conditions (d) Location of the enterprise

Answer: (c) Employment conditions

48. Why does the government support certain activities of the private sector, such as supplying electricity at affordable rates?

(a) To discourage private businesses. (b) To ensure that small-scale units, which can’t afford high costs, do not shut down.

Answer: (b) To ensure that small-scale units, which can’t afford high costs, do not shut down.

49. While industrial output went up by more than nine times, employment in the industry went up by only around:

(a) Two times (b) Three times (c) Five times (d) Nine times

Answer: (b) Three times

50. The protection and support to unorganised sector workers is necessary for:

(a) Economic development only. (b) Social development only. (c) Both economic and social development.

(d) The growth of the organised sector.

Answer: (c) Both economic and social development.

Class 10 Economics Chapter 2 MCQ – Assertion and Reason Questions

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. (b) Both A and R are true but R is not the correct explanation of A. (c) A is true but R is false. (d) A is false but R is true.

1. Assertion (A): The three sectors of the economy – primary, secondary, and tertiary – are highly interdependent. Reason (R): The goods produced in the primary or secondary sector would need to be transported by trucks or trains, which is a tertiary activity.