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UPSC Exam  >  UPSC Test  >  Indian Economy CSE  >  Test: Sectors of the Indian Economy - 1 - UPSC MCQ

Sectors of the Indian Economy - 1 - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: Sectors of the Indian Economy - 1 (15 Questions)

You can prepare effectively for UPSC Indian Economy for UPSC CSE with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Sectors of the Indian Economy - 1". These 15 questions have been designed by the experts with the latest curriculum of UPSC 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 15 minutes
  • - Number of Questions: 15

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Test: Sectors of the Indian Economy - 1 - Question 1
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The sectors are classified into public and private sector on the basis of:

Detailed Solution: Question 1

Industries in the public sector are owned by the government while those in the private sector are owned by entrepreneurs.

In Public sector, the government owns most of the assets and provides all the services.In the Private sector, ownership of assets and delivery of services is in the hands of private individual or companies.

Test: Sectors of the Indian Economy - 1 - Question 2
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Converting iron ore to steel is a part of

Detailed Solution: Question 2

All industrial and manufacturing work comes under secondary sector and activities and converting iron ore to steel is an industrial activity. Hence it comes under secondary activity.

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Test: Sectors of the Indian Economy - 1 - Question 3
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When we produce a good by exploiting natural resources, it is an activity of the:

Detailed Solution: Question 3

When the economic activity depends mainly on exploitation of natural resources then that activity comes under the primary sector. Agriculture and its related activities are the primary sectors of economy. PRIMARY SECTOR is the economic sector that produce goods by exploiting the natural resources because it forms the base for all the products that are associated directly with land and water. Production of wheat, vegetables, milk , marble and coal are some examples of this sector.

Test: Sectors of the Indian Economy - 1 - Question 4
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ATM is an example of

Detailed Solution: Question 4

ATM is an example of tertiary sector which is also known as service sector. ATM is a machine whose full name is Automated Teller Machine. It was invented in 1960 by John Shepherd - Barron.

Test: Sectors of the Indian Economy - 1 - Question 5
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The service sector includes activities such as:

Detailed Solution: Question 5

  • The service sector primarily includes industries that provide services to consumers and businesses.
  • Transport involves moving people and goods, essential for economic activity.
  • Communication encompasses various means of information exchange, vital for connectivity.
  • Banking provides financial services, facilitating transactions and savings.
  • In contrast, agriculture, manufacturing (like sugar and bricks), and forestry are part of the primary and secondary sectors, not services.

Test: Sectors of the Indian Economy - 1 - Question 6
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Which of the following is a measure to address unirrigated land in the farming sector?

Detailed Solution: Question 6

Unirrigated land can be addressed by increasing water availability, which is typically achieved through the construction of canals. Canals help in irrigating land that lacks water sources, thus improving crop productivity.

Test: Sectors of the Indian Economy - 1 - Question 7
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Which of the following is NOT a reason why workers in the unorganised sector are considered to be exploited?

Detailed Solution: Question 7

Workers in the unorganised sector are exploited due to low wages, lack of job security, and absence of medical benefits. High wages would not be a reason for exploitation.

Test: Sectors of the Indian Economy - 1 - Question 8
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What is the primary characteristic that differentiates the tertiary sector from the primary and secondary sectors?

Detailed Solution: Question 8

The tertiary sector is unique because it provides services and support rather than producing goods. For example, transportation and retail services support the distribution of goods produced by the primary and secondary sectors.

Test: Sectors of the Indian Economy - 1 - Question 9
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Which sector includes jobs like teaching, banking, and transportation?

Detailed Solution: Question 9

The tertiary sector includes service-oriented jobs such as teaching, banking, and transportation. These jobs support other sectors and do not involve direct production of goods.

Test: Sectors of the Indian Economy - 1 - Question 10
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In the city of Surat, what percentage of workers are employed in small workshops usually not registered with the government?

Detailed Solution: Question 10

In Surat, 50% of the workers are employed in small workshops that are usually not registered with the government. This contributes to the unorganised sector's large share of employment.

Test: Sectors of the Indian Economy - 1 - Question 11
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Which of the following is a common feature of the unorganised sector?

Detailed Solution: Question 11

The unorganised sector is characterized by a lack of formal employment benefits such as job security, medical benefits, and regular wages. This results in the exploitation of workers.

Test: Sectors of the Indian Economy - 1 - Question 12
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What is the primary purpose of the National Rural Employment Guarantee Act (NREGA) 2005?

Detailed Solution: Question 12

NREGA 2005 was introduced to guarantee 100 days of employment per year to individuals seeking work in rural areas. It aims to provide income security and create additional job opportunities.

Test: Sectors of the Indian Economy - 1 - Question 13
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How does the tertiary sector contribute to the development of primary and secondary sectors?

Detailed Solution: Question 13

The tertiary sector supports the development of primary and secondary sectors by providing essential services such as transportation, banking, and retail. These services help in the smooth operation and distribution of goods produced in other sectors.

Test: Sectors of the Indian Economy - 1 - Question 14
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Which of the following sectors includes workers who are often involved in informal or temporary employment?

Detailed Solution: Question 14

The unorganised sector is characterized by informal or temporary employment, with workers often facing irregular income and lack of job security. This sector includes small-scale businesses and informal employment settings.

Test: Sectors of the Indian Economy - 1 - Question 15
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What is disguised unemployment?

Detailed Solution: Question 15

Disguised unemployment occurs when workers are employed but their skills are not fully utilized. This often happens in situations where more workers are employed than needed, leading to underutilization of labor. For example, if more people work on a farm than necessary, some workers may be underemployed.

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About this UPSC Practice Test

This test contains 15 MCQs on Sectors of the Indian Economy - 1 with detailed solutions for each question. It is part of the Indian Economy for UPSC CSE course on EduRev, designed to align with the current UPSC syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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