Posted by Anjali Kaur on Nov 23, 2021
Test on Sectors of Indian Economy

Practice Test 4- Sectors of Indian Economy

Practice Test 4- Sectors of Indian Economy.

1. What is primary sector?

Answer. The primary sector is also known as the agricultural sector, where we get the raw material directly from nature. For example, Sugarcane.

2. Why tertiary sector is called service sector?

Answer. The tertiary sector is that sector where no production is done, it only provides services of delivering the final products into the market. For example, whatever is processed in the industrial sector, will reach the final consumers via delivery services.

3. What type of goods are counted for the calculation of GDP in India?

Answer. Only the final goods value is used for the calculation of GDP in India.

4. Mention the advantage of accounting final goods in calculation of GDP.

Answer. It helps in avoiding the problem of double counting.

5. What is the most important reason for labour abundance in Primary sector in India?

Answer. Extreme poverty, population, and illiteracy (not having the required skills and degrees to enter into other sectors) are the reasons.

6. What is GDP?

Answer. Gross domestic product is the final value of goods and services which are produced in a country during an accounting year.

7. How is GDP calculated?

Answer. GDP is calculated by taking the final values of the goods which are produced in an economy.

8. Who measures GDP of India?

Answer. In India the entire responsibility of calculating the GDP is with the Central Statistics Office under the Ministry of Statistics and Program.

9. What does underemployment mean?

Answer. It means when people are employed for a lesser number of hours and are underpaid.

10. What is disguised unemployment?

Answer. When more than the required number of people are employed on the job or on a piece of land, it is disguised unemployment. It is commonly faced in the farming sector.

11. What is an unorganised sector?

Answer. An unorganized sector is a sector that is generally not governed by the rules and regulations that are laid down by the Government regarding the condition of employment.

12. What is public sector?

Answer. An economic activity owned and managed by the government is called a public sector activity.

13. What is private sector?

Answer. An economic activity owned and managed by an individual or a group of individuals is called a private sector activity.

14. Differentiate between economic and non-economic activities.

Answer. Economic activity refers to a human activity related to the production and consumption of goods and services for economic gain, that is, for monetary benefits. Non-economic activity is an activity performed gladly, with the aim of providing services to others without any regard to monetary gain.

15. In what ways can employment be increased in urban areas?


  1. Education facilities should be increased so as to employ more teaching staff.
  2. Health facilities also need to be improved, increasing job opprtunities for doctors, nurses, health workers, etc.
  3. Tourism can also be seen as a development factor.

16. Give 3 benefits of organised sector.


  1. Workers in the organized sector enjoy security of employment.
  2. They work only for a fixed number of hours. If they work more, they have to be paid overtime by the employer.
  3. They also get several other benefits from the employers like paid leave, payment during holidays, provident fund, gratuity, etc.

17. Distinguish between primary and secondary sector.

Answer. Primary Sector refers to the sector wherein the production of goods and services is done by the exploitation of natural resources. The secondary Sector refers to the economic sector which transforms raw materials into finished goods through a manufacturing process that has more use-value.

18. Distinguish between primary and tertiary sector.

Answer. The agricultural and allied sector services are known as the Primary Sector. Raw materials for goods and services are provided for the Primary Sector.

The service sector is known as the Tertiary Sector. It only supplied the final goods and services to the consumers.

19. Explain 5 differences between public and private sector.

Answer. Refer book.

20. Why is tertiary sector becoming important in India? Explain.


  1. Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors.
  2. Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.

21. Explain the objectives of implementing the MGNREGA, 2005.


  1. Mahatma Gandhi NREGA is an Act to provide a legal guarantee of 100 days of wage employment in a financial years to every rural household whose adult members volunteer to do unskilled manual work. Mahatma Gandhi NREGA came into effect on February2, 2006.
  2. He/she will get wages as per the notified wage rate for Mahatma Gandhi NREGA in his/her state.
  3. These wage rates have been notified by the Ministry of Rural Development, Government of India.

Thank You!

Notify of
Inline Feedbacks
View all comments

Learn with Anjali started because there wasn't an easy-to-consume resource to help students with their studies. Anjali is on single-minded mission to make you successful!

If you would like to suggest topics, leave feedback or share your story, please leave a message.

Leave a message