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CBSE Class 10 Economics • Sectors of the Indian Economy

Sectors of the Indian Economy Class 10 MCQs with Answers

Practise comprehensive chapter-based multiple choice questions covering primary, secondary and tertiary sectors, organised and unorganised sectors, public and private sectors, employment and disguised unemployment.

120MCQs

NCERTChapter-based practice

AnswersIncluded

ConceptsExam practice

Topics covered: primary, secondary and tertiary sectors; classification of economic activities; GDP; employment; organised and unorganised sectors; job security; public and private sectors; government activities; underemployment; disguised unemployment; rural employment; infrastructure; and employment generation.

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Complete Sectors of the Indian Economy Revision

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MCQs 1–40 MCQs 41–80 MCQs 81–120 Questions & Answers

Sectors of the Indian Economy MCQs — Core Concepts

1–40

Basic definitions, sector classification, GDP and interdependence.

1. What is a sector?

A. A group of economic activities classified on a common basis

B. Only government activity

C. Only agricultural activity

D. Only industrial activity

Correct answer: A. A group of economic activities classified on a common basis

2. Which sector directly uses natural resources?

A. Secondary sector

B. Primary sector

C. Tertiary sector

D. Private sector

Correct answer: B. Primary sector

3. Which activity belongs to the primary sector?

A. Manufacturing

B. Banking

C. Agriculture

D. Transport

Correct answer: C. Agriculture

4. Which sector transforms raw materials into other goods?

A. Primary

B. Tertiary

C. Public

D. Secondary

Correct answer: D. Secondary

5. Manufacturing belongs to which sector?

A. Secondary

B. Primary

C. Tertiary

D. Public

Correct answer: A. Secondary

6. Which sector mainly provides services?

A. Primary

B. Tertiary

C. Secondary

D. Agricultural

Correct answer: B. Tertiary

7. Which activity is part of the tertiary sector?

A. Mining

B. Manufacturing

C. Transport

D. Farming

Correct answer: C. Transport

8. Why is the tertiary sector called the service sector?

A. It extracts minerals

B. It grows crops

C. It manufactures machinery

D. It provides services

Correct answer: D. It provides services

9. Which of the following is a primary-sector activity?

A. Fishing

B. Banking

C. Teaching

D. Manufacturing

Correct answer: A. Fishing

10. Mining is classified under the

A. secondary sector

B. primary sector

C. tertiary sector

D. private sector only

Correct answer: B. primary sector

11. Which sector includes banking?

A. Primary

B. Secondary

C. Tertiary

D. Agricultural

Correct answer: C. Tertiary

12. Education is generally classified as a

A. primary activity

B. secondary activity

C. mining activity

D. tertiary activity

Correct answer: D. tertiary activity

13. GDP refers to the value of

A. final goods and services produced within a country

B. only agricultural products

C. only exports

D. only government services

Correct answer: A. final goods and services produced within a country

14. Why are final goods used when calculating GDP?

A. To exclude all services

B. To avoid repeated counting of intermediate production

C. To count only imports

D. To measure population

Correct answer: B. To avoid repeated counting of intermediate production

15. Why are the three sectors interdependent?

A. They have identical activities

B. They never interact

C. Each sector can require outputs or services from other sectors

D. Only government connects them

Correct answer: C. Each sector can require outputs or services from other sectors

16. Agriculture can provide raw materials to

A. only banks

B. only schools

C. no other sector

D. industries

Correct answer: D. industries

17. Industries may depend on the tertiary sector for

A. transport and banking

B. rainfall only

C. soil formation

D. crop harvesting only

Correct answer: A. transport and banking

18. Which sector helps move goods from producers to markets?

A. Primary sector only

B. Tertiary sector

C. Secondary sector only

D. Agricultural sector only

Correct answer: B. Tertiary sector

19. Which classification is based on the nature of economic activity?

A. Public and private

B. Rural and urban

C. Primary, secondary and tertiary

D. Formal and informal only

Correct answer: C. Primary, secondary and tertiary

20. Which classification is mainly based on ownership?

A. Primary and secondary sectors

B. Agricultural and industrial sectors

C. Rural and urban sectors

D. Public and private sectors

Correct answer: D. Public and private sectors

21. Which classification helps study employment conditions?

A. Organised and unorganised sectors

B. Primary and secondary only

C. Agricultural and mining only

D. Rural and coastal only

Correct answer: A. Organised and unorganised sectors

22. Which activity converts raw materials into manufactured products?

A. Banking

B. Manufacturing

C. Transport

D. Farming

Correct answer: B. Manufacturing

23. Which sector includes forestry?

A. Secondary

B. Tertiary

C. Primary

D. Public only

Correct answer: C. Primary

24. Which is a service activity?

A. Mining

B. Farming

C. Manufacturing

D. Transport

Correct answer: D. Transport

25. Which statement about sectors is correct?

A. Economic sectors are interconnected

B. Each sector works independently

C. Services never support production

D. Agriculture cannot supply industries

Correct answer: A. Economic sectors are interconnected

26. Which activity directly depends on land and natural resources?

A. Banking

B. Agriculture

C. Teaching

D. Insurance

Correct answer: B. Agriculture

27. Which activity belongs to the secondary sector?

A. Fishing

B. Banking

C. Manufacturing

D. Transport

Correct answer: C. Manufacturing

28. Which activity belongs to the tertiary sector?

A. Mining

B. Agriculture

C. Manufacturing

D. Healthcare

Correct answer: D. Healthcare

29. Which of these is NOT a primary-sector activity?

A. Banking

B. Fishing

C. Mining

D. Forestry

Correct answer: A. Banking

30. Which of these is NOT a tertiary-sector activity?

A. Banking

B. Mining

C. Transport

D. Education

Correct answer: B. Mining

31. Why is sectoral classification useful?

A. It removes all unemployment

B. It fixes income distribution

C. It helps understand the structure of an economy

D. It eliminates all economic activity

Correct answer: C. It helps understand the structure of an economy

32. Which sector can provide services needed by farmers?

A. Primary only

B. Secondary only

C. None

D. Tertiary

Correct answer: D. Tertiary

33. Which activity is directly related to natural-resource extraction?

A. Mining

B. Banking

C. Education

D. Transport

Correct answer: A. Mining

34. Which sector processes agricultural raw materials?

A. Primary sector only

B. Secondary sector

C. Tertiary sector only

D. Public sector only

Correct answer: B. Secondary sector

35. Which service helps producers arrange finance?

A. Farming

B. Mining

C. Banking

D. Manufacturing

Correct answer: C. Banking

36. Which sector supports production through communication?

A. Primary sector only

B. Secondary sector only

C. Agricultural sector only

D. Tertiary sector

Correct answer: D. Tertiary sector

37. Which sector includes activities such as trade?

A. Tertiary

B. Primary

C. Secondary

D. Mining

Correct answer: A. Tertiary

38. What is the main feature of the secondary sector?

A. Direct extraction only

B. Transformation of materials

C. Service provision only

D. Government ownership only

Correct answer: B. Transformation of materials

39. What is the main feature of the tertiary sector?

A. Extraction of minerals

B. Cultivation only

C. Provision of services

D. Processing only

Correct answer: C. Provision of services

40. Which statement best describes the three sectors?

A. They have no relationship

B. Only the primary sector produces value

C. Only the tertiary sector matters

D. They perform different but interconnected economic functions

Correct answer: D. They perform different but interconnected economic functions

Sectors MCQs — Employment, Organisation & Ownership

41–80

Organised and unorganised sectors, public and private sectors, employment security and government activity.

41. What is the organised sector?

A. Registered workplaces generally following established rules

B. Only agricultural workplaces

C. Unregistered household activity only

D. Only government farms

Correct answer: A. Registered workplaces generally following established rules

42. What is the unorganised sector?

A. Only government offices

B. A sector containing many informal or less-regulated workplaces

C. Only registered factories

D. Only banks

Correct answer: B. A sector containing many informal or less-regulated workplaces

43. Which sector generally provides greater formal employment security?

A. Unorganised sector

B. Informal sector only

C. Organised sector

D. Household sector only

Correct answer: C. Organised sector

44. Workers in the unorganised sector may face

A. guaranteed permanent employment

B. identical conditions everywhere

C. automatic formal benefits

D. less job security

Correct answer: D. less job security

45. Why is protection of unorganised workers important?

A. Their employment conditions can be less secure and less regulated

B. They do not contribute to the economy

C. They work only for government

D. They cannot be employed

Correct answer: A. Their employment conditions can be less secure and less regulated

46. Job security means

A. No work at all

B. Reasonable assurance of continued employment under established conditions

C. Working without payment

D. Temporary unemployment

Correct answer: B. Reasonable assurance of continued employment under established conditions

47. What mainly distinguishes public and private sectors?

A. Weather

B. Population

C. Ownership and control

D. Geography only

Correct answer: C. Ownership and control

48. The public sector is generally owned or controlled by

A. individual consumers only

B. foreign tourists

C. workers collectively in every case

D. the government

Correct answer: D. the government

49. The private sector is generally owned and managed by

A. private individuals or organisations

B. the government only

C. schools only

D. local administrations only

Correct answer: A. private individuals or organisations

50. Public-sector activities may focus strongly on

A. private profit alone

B. public welfare and essential services

C. luxury consumption only

D. exports only

Correct answer: B. public welfare and essential services

51. Private-sector activities generally operate according to

A. public welfare alone

B. government ownership

C. market demand and commercial objectives

D. agricultural rules only

Correct answer: C. market demand and commercial objectives

52. Why may the government provide essential services?

A. To eliminate all private activity

B. To stop production

C. To reduce all services

D. To ensure broader access and public welfare

Correct answer: D. To ensure broader access and public welfare

53. Which is an example of an employment concern?

A. Job security

B. Rainfall only

C. Soil colour

D. Population size only

Correct answer: A. Job security

54. Underemployment occurs when

A. nobody works

B. labour is not fully used for its productive potential

C. all workers are fully productive

D. all jobs are permanent

Correct answer: B. labour is not fully used for its productive potential

55. Disguised unemployment is a form of

A. full employment

B. industrialisation

C. underemployment

D. public ownership

Correct answer: C. underemployment

56. In disguised unemployment, more workers are engaged than are

A. legally permitted

B. paid by the government

C. educated

D. required for the existing level of output

Correct answer: D. required for the existing level of output

57. Disguised unemployment is commonly discussed in relation to

A. rural agriculture

B. banking alone

C. international trade only

D. luxury services only

Correct answer: A. rural agriculture

58. Suppose five workers can produce the same farm output as eight workers. The extra three workers represent

A. full employment

B. disguised unemployment

C. industrial employment

D. organised employment

Correct answer: B. disguised unemployment

59. Why are the extra workers in disguised unemployment considered underemployed?

A. They have no work at all

B. They own the land

C. Their labour does not add significantly to existing output

D. They work in factories

Correct answer: C. Their labour does not add significantly to existing output

60. Which sector may contain many small informal workplaces?

A. Organised sector only

B. Public sector only

C. Government sector only

D. Unorganised sector

Correct answer: D. Unorganised sector

61. Which sector generally has more formal employment rules?

A. Organised sector

B. Unorganised sector

C. Informal household sector

D. Seasonal sector only

Correct answer: A. Organised sector

62. Which issue may affect workers in the unorganised sector?

A. Guaranteed security

B. Irregular employment

C. Identical benefits everywhere

D. Automatic permanent contracts

Correct answer: B. Irregular employment

63. Why is government intervention important for vulnerable workers?

A. It eliminates all employment

B. It prevents workers from earning

C. It can improve protection and working conditions

D. It ends all private enterprises

Correct answer: C. It can improve protection and working conditions

64. Which sector may require government responsibility because of wider social needs?

A. Private sector only

B. Household sector only

C. Agricultural sector only

D. Public sector

Correct answer: D. Public sector

65. Which statement best describes public-sector activity?

A. It can provide infrastructure and essential services

B. It is always privately owned

C. It never serves public needs

D. It is limited to farming

Correct answer: A. It can provide infrastructure and essential services

66. Which statement best describes private-sector ownership?

A. Ownership only by government

B. Ownership by private individuals or organisations

C. Ownership only by schools

D. No ownership

Correct answer: B. Ownership by private individuals or organisations

67. Which is NOT a basis for the sectoral distinctions discussed here?

A. Nature of activity

B. Ownership

C. Favourite colour

D. Employment conditions

Correct answer: C. Favourite colour

68. Why is employment quality important?

A. All employment is automatically secure

B. Employment numbers never matter

C. Only ownership matters

D. A job may exist without providing adequate security or productive work

Correct answer: D. A job may exist without providing adequate security or productive work

69. What can better infrastructure encourage?

A. New economic activities and employment

B. Only unemployment

C. Less production automatically

D. No economic activity

Correct answer: A. New economic activities and employment

70. Which can help create rural employment?

A. Reducing all productive activity

B. Irrigation and infrastructure

C. Closing storage facilities

D. Removing transport

Correct answer: B. Irrigation and infrastructure

71. Which can create non-farm rural employment?

A. Less infrastructure

B. Reduced services

C. Small-scale industries

D. Fewer productive activities

Correct answer: C. Small-scale industries

72. How can storage facilities support employment?

A. They eliminate all work

B. They prevent agricultural activity

C. They reduce all transport

D. They create work in handling, maintenance and related activities

Correct answer: D. They create work in handling, maintenance and related activities

73. Better irrigation can increase employment by

A. allowing land to be cultivated more regularly

B. eliminating agricultural work

C. reducing all production

D. stopping rural activity

Correct answer: A. allowing land to be cultivated more regularly

74. Why is rural employment diversification important?

A. It eliminates services

B. It can reduce dependence on limited agricultural work

C. It reduces all incomes

D. It stops manufacturing

Correct answer: B. It can reduce dependence on limited agricultural work

75. Which activity can provide rural non-farm employment?

A. Only subsistence farming

B. Reduced transport

C. Processing

D. Unemployment

Correct answer: C. Processing

76. What can roads and communication do for the economy?

A. Prevent trade

B. Eliminate all production

C. Reduce all employment

D. Connect producers, markets and services

Correct answer: D. Connect producers, markets and services

77. Why is the unorganised sector an important policy concern?

A. It provides livelihoods while workers may remain vulnerable

B. It contains no workers

C. It is entirely government-owned

D. It has identical formal rules everywhere

Correct answer: A. It provides livelihoods while workers may remain vulnerable

78. Which sector can contribute to employment through market-based activity?

A. Only public sector

B. Private sector

C. No sector

D. Only household work

Correct answer: B. Private sector

79. Which sector may provide activities because they serve public needs rather than only profit?

A. Private sector only

B. Informal sector only

C. Public sector

D. Agricultural sector only

Correct answer: C. Public sector

80. Which statement best explains employment policy?

A. Only the number of workers matters

B. Job security is irrelevant

C. Productivity never matters

D. It should consider both the quantity and quality of employment

Correct answer: D. It should consider both the quantity and quality of employment

Sectors MCQs — Underemployment, Rural Development & Application

81–120

Higher-order and application-based questions built from the chapter's concepts.

81. A farm requires five workers but eight family members work on it. What does this illustrate?

A. Disguised unemployment

B. Full employment

C. Industrial employment

D. Organised employment

Correct answer: A. Disguised unemployment

82. If removing some workers does not reduce existing farm output, those workers are

A. fully productive

B. surplus to the existing requirement

C. unemployed with no work

D. industrial workers

Correct answer: B. surplus to the existing requirement

83. Which measure can help reduce disguised unemployment?

A. Adding more workers to the same limited work

B. Reducing infrastructure

C. Creating productive non-farm employment

D. Closing small industries

Correct answer: C. Creating productive non-farm employment

84. Which is an example of productive rural diversification?

A. Adding unnecessary workers to farms

B. Reducing services

C. Closing storage facilities

D. Developing small-scale industries

Correct answer: D. Developing small-scale industries

85. Which infrastructure can directly support agricultural employment?

A. Irrigation

B. Reduced electricity

C. Less storage

D. Poor transport

Correct answer: A. Irrigation

86. Which combination can create rural employment opportunities?

A. Unemployment and reduced production

B. Irrigation, storage, roads and small industries

C. Less infrastructure and fewer services

D. Only adding farm workers

Correct answer: B. Irrigation, storage, roads and small industries

87. Why can adding more workers to an already overcrowded farm fail to create productive employment?

A. It always doubles output

B. It creates manufacturing automatically

C. It may increase disguised unemployment

D. It improves job security automatically

Correct answer: C. It may increase disguised unemployment

88. Which activity can absorb surplus rural labour?

A. Reducing all non-farm activity

B. Removing transport

C. Closing services

D. Small-scale manufacturing

Correct answer: D. Small-scale manufacturing

89. How can storage help the rural economy?

A. It can reduce losses and create related work

B. It eliminates agriculture

C. It stops trade

D. It removes all transport needs

Correct answer: A. It can reduce losses and create related work

90. Which statement about employment is most accurate?

A. Any employment is automatically productive

B. Employment should ideally be productive and adequately secure

C. Security never matters

D. Underemployment is the same as full employment

Correct answer: B. Employment should ideally be productive and adequately secure

91. Which sector is especially important for services supporting both production and consumption?

A. Primary sector only

B. Secondary sector only

C. Tertiary sector

D. Mining sector only

Correct answer: C. Tertiary sector

92. Which service connects producers with markets?

A. Mining

B. Farming

C. Forestry

D. Trade

Correct answer: D. Trade

93. Which service helps producers arrange financial resources?

A. Banking

B. Agriculture

C. Mining

D. Manufacturing

Correct answer: A. Banking

94. Which activity can connect rural producers with consumers?

A. Reduced communication

B. Transport and trade

C. Less storage

D. Reduced roads

Correct answer: B. Transport and trade

95. Why can infrastructure investment create both direct and indirect employment?

A. Infrastructure eliminates production

B. It reduces all services

C. Construction creates work and better infrastructure can encourage further economic activity

D. It only affects agriculture

Correct answer: C. Construction creates work and better infrastructure can encourage further economic activity

96. Which statement about the public sector is correct?

A. It is always privately owned

B. It never provides services

C. It exists only in agriculture

D. It can undertake activities important for public welfare

Correct answer: D. It can undertake activities important for public welfare

97. Why may some essential services require government support?

A. Universal access may be a wider social objective

B. Private activity is impossible everywhere

C. Services have no value

D. Citizens do not need services

Correct answer: A. Universal access may be a wider social objective

98. Which is a possible disadvantage faced by an unorganised-sector worker?

A. Guaranteed security

B. Limited employment protection

C. Automatic formal benefits

D. Permanent employment in every case

Correct answer: B. Limited employment protection

99. Which condition is more commonly associated with formal organised employment?

A. Complete absence of regulation

B. Irregular work by definition

C. Established employment rules

D. No job security

Correct answer: C. Established employment rules

100. Which concept describes workers who appear employed but are not fully utilised?

A. Full employment

B. Organised employment

C. Private ownership

D. Disguised unemployment

Correct answer: D. Disguised unemployment

101. Which policy can help move surplus labour into more productive work?

A. Creating opportunities in manufacturing and services

B. Adding more workers to the same farm

C. Reducing rural infrastructure

D. Closing small industries

Correct answer: A. Creating opportunities in manufacturing and services

102. Which combination can strengthen rural economic opportunities?

A. Less infrastructure

B. Roads, electricity, irrigation and storage

C. Reduced communication

D. Fewer productive activities

Correct answer: B. Roads, electricity, irrigation and storage

103. Which statement about sectors is most appropriate?

A. Sectors are completely isolated

B. Services cannot support production

C. Activities in different sectors support one another

D. Manufacturing never needs raw materials

Correct answer: C. Activities in different sectors support one another

104. Which example best illustrates sectoral interdependence?

A. A farmer works without any inputs

B. A factory requires no services

C. A bank produces crops

D. A farmer uses banking and transport while supplying raw material to an industry

Correct answer: D. A farmer uses banking and transport while supplying raw material to an industry

105. Why should employment creation be linked with productivity?

A. Jobs should make effective use of labour

B. Any additional worker always increases output

C. Productivity is unrelated to employment

D. Underemployment is desirable

Correct answer: A. Jobs should make effective use of labour

106. Which statement distinguishes unemployment from disguised unemployment?

A. Both always mean exactly the same thing

B. In disguised unemployment a person is engaged in work but their labour may be unnecessary for existing output

C. Disguised unemployment means having no work

D. Unemployment always occurs on farms

Correct answer: B. In disguised unemployment a person is engaged in work but their labour may be unnecessary for existing output

107. Which development can reduce dependence on agricultural employment?

A. Reduced economic activity

B. Less transport

C. Rural industries and services

D. Fewer employment opportunities

Correct answer: C. Rural industries and services

108. Which of the following is most likely to support long-term rural employment?

A. Increasing hidden unemployment

B. Reducing infrastructure

C. Limiting non-farm work

D. Diversified productive activities

Correct answer: D. Diversified productive activities

109. Which is an important goal of employment generation?

A. Better use of available labour

B. More disguised unemployment

C. Less productive activity

D. Lower employment opportunities

Correct answer: A. Better use of available labour

110. Which statement best captures the employment lesson of the chapter?

A. Any work is automatically productive

B. Employment should be productive, secure and useful for livelihoods

C. Security does not matter

D. Only government jobs matter

Correct answer: B. Employment should be productive, secure and useful for livelihoods

111. Which sector provides transport, banking and communication services?

A. Primary sector

B. Secondary sector

C. Tertiary sector

D. Agricultural sector

Correct answer: C. Tertiary sector

112. Which statement about government and employment is consistent with the chapter?

A. Government activity can never affect employment

B. Infrastructure reduces all employment

C. Public activity is unrelated to economic development

D. Government investment in infrastructure can create employment

Correct answer: D. Government investment in infrastructure can create employment

113. Which is an example of an infrastructure-related employment measure?

A. Building roads

B. Reducing roads

C. Closing storage facilities

D. Reducing electricity access

Correct answer: A. Building roads

114. Which sector can provide non-farm employment in rural areas?

A. Only agriculture

B. Manufacturing and services

C. Only mining

D. No sector

Correct answer: B. Manufacturing and services

115. Why is diversification useful where agricultural work is limited?

A. It increases disguised unemployment automatically

B. It reduces all incomes

C. It creates alternative productive opportunities

D. It removes services

Correct answer: C. It creates alternative productive opportunities

116. Which statement best describes the unorganised sector?

A. Every workplace is formally registered

B. Workers always have permanent jobs

C. Employment rules are identical everywhere

D. Employment may be informal and less protected

Correct answer: D. Employment may be informal and less protected

117. Which statement best describes the organised sector?

A. Workplaces are generally registered and more formally regulated

B. Workplaces are always informal

C. Workers have no employment rules

D. It includes only agriculture

Correct answer: A. Workplaces are generally registered and more formally regulated

118. Which is the correct relationship between sectors and employment?

A. All sectors provide identical jobs

B. Different sectors can have different employment patterns and conditions

C. Employment exists only in agriculture

D. Services do not create employment

Correct answer: B. Different sectors can have different employment patterns and conditions

119. What should employment creation ultimately aim to achieve?

A. More disguised unemployment

B. Less productive use of labour

C. Productive opportunities and improved livelihoods

D. Fewer economic activities

Correct answer: C. Productive opportunities and improved livelihoods

120. What is the central message of the chapter Sectors of the Indian Economy?

A. Only agriculture matters

B. Services are unrelated to production

C. Employment conditions are identical everywhere

D. The economy contains interconnected sectors with different production, ownership and employment conditions

Correct answer: D. The economy contains interconnected sectors with different production, ownership and employment conditions

Remember the Core Ideas

Primary Sector Directly uses natural resources; agriculture, fishing, forestry and mining are key examples.

Secondary Sector Transforms raw materials into other goods through manufacturing and related activities.

Tertiary Sector Provides services such as transport, banking, communication, education and healthcare.

Organised Sector Registered and more formally regulated workplaces with comparatively clearer employment conditions.

Unorganised Sector Often informal or less regulated employment with greater vulnerability and weaker job security.

Public Sector Owned or controlled by the government and often focused on wider public and social objectives.

Private Sector Owned and managed by private individuals or organisations, generally guided by commercial objectives.

Disguised Unemployment More workers are engaged than required for the existing level of output.

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