CBSE Class 10 Economics: Chapter 2 Sectors of the Indian Economy - Part 1: MCQ

Top 25 MCQs with Answers | Latest CBSE Pattern

1. MCQ 2. VSA 3. SA 4. LA 5. Assertion-Reason 6. Case Study 7. Concepts 8. One-Shot Revision

Welcome to Part 1 of our new 8-part series on Economics Chapter 2: Sectors of the Indian Economy. This post contains the top 25 Multiple Choice Questions (MCQs) to help you understand the Primary, Secondary, and Tertiary sectors, as well as Organized vs. Unorganized sectors.

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Top 25 MCQs - Sectors of the Indian Economy

Question 1: Primary Sector Activity

CBSE PYQ 2023

Which of the following activities belongs to the primary sector?

• (a) Banking
• (b) Making sugar from sugarcane
• (c) Fishing
• (d) Transport

(c) Fishing

Explanation: Activities that involve the direct extraction or use of natural resources (like agriculture, fishing, mining) are part of the Primary Sector.

Question 2: GDP Definition

CBSE PYQ 2020

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

(b) all final goods and services

Explanation: GDP (Gross Domestic Product) counts only the value of final goods and services to avoid double counting of intermediate goods.

Question 3: Employment Share

CBSE 2022

Which sector continues to be the largest employer in India?

• (a) Primary Sector
• (b) Secondary Sector
• (c) Tertiary Sector
• (d) IT Sector

(a) Primary Sector

Explanation: Although the share in GDP has fallen, the primary sector (agriculture) still employs the largest percentage of the Indian workforce (over 40%).

Question 4: Tertiary Sector

CBSE PYQ 2019

Which of the following is NOT an example of the tertiary sector?

• (a) Banking
• (b) Transport
• (c) Forestry
• (d) Communication

(c) Forestry

Explanation: Forestry deals with natural resources and belongs to the Primary Sector. The others are services.

Question 5: NREGA 2005

CBSE PYQ 2024

Under NREGA 2005, how many days of work are guaranteed in a year to rural households?

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

(b) 100 days

Explanation: The National Rural Employment Guarantee Act (NREGA) 2005 guarantees 100 days of wage employment in a financial year to a rural household.

Question 6: Public Sector Motive

CBSE 2018

The main motive of the public sector is:

• (a) Profit earning
• (b) Social welfare
• (c) Entertainment
• (d) None of these

(b) Social welfare

Explanation: The public sector (government-owned) operates primarily for the benefit of the people (social welfare), unlike the private sector which is profit-driven.

Question 7: Disguised Unemployment

CBSE PYQ 2021

In which sector is 'Disguised Unemployment' most commonly found?

• (a) IT Sector
• (b) Agriculture Sector
• (c) Manufacturing Sector
• (d) Banking Sector

(b) Agriculture Sector

Explanation: In agriculture, often more people are working on a farm than are actually required. If some are removed, production does not drop. This is disguised unemployment.

Question 8: Manufacturing

CBSE 2016

The sector in which natural products are changed into other forms through ways of manufacturing is known as:

• (a) Primary Sector
• (b) Secondary Sector
• (c) Tertiary Sector
• (d) Quaternary Sector

(b) Secondary Sector

Explanation: The secondary sector (or industrial sector) covers activities where natural products are converted into finished goods through manufacturing.

Question 9: Unorganized Sector

CBSE PYQ 2025

Which of the following is a characteristic of the unorganized sector?

• (a) Fixed working hours
• (b) Paid holidays
• (c) Job security
• (d) Jobs are low-paid and often not regular

(d) Jobs are low-paid and often not regular

Explanation: The unorganized sector is characterized by small and scattered units outside government control. Jobs are insecure, low-paid, and lack benefits like paid leave.

Question 10: Ownership Classification

CBSE 2022

On the basis of ownership, sectors are classified into:

• (a) Public and Private
• (b) Primary and Secondary
• (c) Organized and Unorganized
• (d) Developed and Developing

(a) Public and Private

Explanation: Ownership classification determines who owns the assets and provides the services: the government (Public) or private individuals/companies (Private).

Question 11: Service Sector

CBSE 2019

The tertiary sector is also known as the:

• (a) Agricultural sector
• (b) Industrial sector
• (c) Service sector
• (d) Private sector

(c) Service sector

Explanation: The tertiary sector does not produce goods but generates services that support the production process (e.g., banking, transport, education).

Question 12: TISCO Example

CBSE PYQ 2017

TISCO (Tata Iron and Steel Company) is an example of which sector?

• (a) Public Sector
• (b) Private Sector
• (c) Unorganized Sector
• (d) Cooperative Sector

(b) Private Sector

Explanation: TISCO is owned by private individuals (Tata Group) and its motive is profit, hence it is in the private sector.

Question 13: Intermediate Goods

CBSE 2023

Which of the following is an example of an intermediate good?

• (a) Bread sold to a consumer
• (b) Wheat flour used by a baker
• (c) A car sold to a customer
• (d) A television in a house

(b) Wheat flour used by a baker

Explanation: Intermediate goods are used up in producing final goods. Flour is used to make bread (the final good).

Question 14: Rising Importance

CBSE 2020

In the last 40 years, production has increased the most in which sector?

• (a) Primary
• (b) Secondary
• (c) Tertiary
• (d) All grew equally

(c) Tertiary

Explanation: The tertiary sector has emerged as the largest producing sector in India, replacing the primary sector, due to the rise in basic services and IT.

Question 15: Right to Work

CBSE PYQ 2014

Which act is also known as the 'Right to Work'?

• (a) Factories Act
• (b) Minimum Wages Act
• (c) MGNREGA
• (d) Consumer Protection Act

(c) MGNREGA

Explanation: MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) 2005 guarantees 100 days of wage employment, effectively ensuring the right to work for rural poor.

Question 16: Paid Holidays

CBSE 2018

Workers enjoy job security and paid holidays in the:

• (a) Unorganized Sector
• (b) Agriculture Sector
• (c) Organized Sector
• (d) Private Sector (only small shops)

(c) Organized Sector

Explanation: The organized sector covers those enterprises where the terms of employment are regular and people have assured work, registered by the government.

Question 17: Underemployment Term

CBSE 2021

What is another name for underemployment?

• (a) Seasonal unemployment
• (b) Disguised unemployment
• (c) Cyclical unemployment
• (d) Technical unemployment

(b) Disguised unemployment

Explanation: Underemployment occurs when people are working but not to their full potential. It is "disguised" because they appear employed.

Question 18: Central Statistical Office

CBSE 2015

Which government body measures the GDP in India?

• (a) NITI Aayog
• (b) Ministry of Finance
• (c) Central Statistical Office (CSO)
• (d) RBI

(c) Central Statistical Office (CSO)

Explanation: The measurement of GDP is undertaken by the Central Statistical Office (now NSO) under the Ministry of Statistics and Programme Implementation.

Question 19: Communication

CBSE PYQ 2024

Communication and Banking come under which sector?

• (a) Primary
• (b) Secondary
• (c) Tertiary
• (d) Both Secondary and Tertiary

(c) Tertiary

Explanation: These are services that support other sectors.

Question 20: Public Sector Example

CBSE 2013

Which of the following is an example of the Public Sector?

• (a) Reliance Industries
• (b) Tata Iron and Steel Company
• (c) Railways
• (d) Bajaj Auto

(c) Railways

Explanation: Railways (Indian Railways) are owned and managed by the government, making them part of the public sector. All others listed are private companies.

Question 21: Cotton vs Textile

CBSE 2016

Cotton cultivation belongs to the ____ sector, while textile manufacturing belongs to the ____ sector.

• (a) Secondary, Tertiary
• (b) Primary, Secondary
• (c) Tertiary, Primary
• (d) Secondary, Primary

(b) Primary, Secondary

Explanation: Cotton is a natural product (Agriculture -> Primary). Textiles are manufactured goods (Industry -> Secondary).

Question 22: Activity Classification

CBSE Sample Paper 2023

A flower cultivator belongs to which sector?

• (a) Secondary
• (b) Primary
• (c) Tertiary
• (d) Private

(b) Primary

Explanation: Cultivation of flowers involves exploiting natural resources (soil, water, plants), so it is a primary activity.

Question 23: Final Goods

CBSE 2022

Why are only 'final goods and services' counted in GDP?

• (a) To reduce the value of GDP
• (b) To avoid the problem of double counting
• (c) To simplify calculations
• (d) Because intermediate goods have no value

(b) To avoid the problem of double counting

Explanation: The value of final goods already includes the value of all intermediate goods used in making them. Counting intermediate goods separately would count the same value multiple times.

Question 24: Historical Shift

CBSE 2025

Historically, as countries develop, the economic activity shifts from:

• (a) Primary to Secondary to Tertiary
• (b) Tertiary to Secondary to Primary
• (c) Secondary to Primary to Tertiary
• (d) No shift occurs

(a) Primary to Secondary to Tertiary

Explanation: This is the standard pattern of development. Developed nations initially rely on agriculture, then move to industrialization, and finally to a service-based economy.

Question 25: Unorganized Worker

CBSE 2012

Who among the following is a worker in the unorganized sector?

• (a) A bank clerk
• (b) A teacher in a government school
• (c) A daily wage labourer working for a contractor
• (d) A soldier in the army

(c) A daily wage labourer working for a contractor

Explanation: A daily wage labourer has no job security, no fixed hours, and no paid holidays, which are typical features of the unorganized sector. All others listed are in the organized sector.