Sectors of the Indian Economy — Class 10 MCQs with Answers
Class 10 CBSE Economics · Chapter 2
62 practice questions · 20 Easy · 22 Medium · 20 Hard · Updated
Jump to the 6 solved questions
Practise the most important Class 10 CBSE Economics questions from Chapter 2, "Sectors of the Indian Economy". You get 6 timed quizzes made from 62 NCERT-based MCQs, with answers and explanations. The questions are split into 20 Easy, 22 Medium and 20 Hard. Warm up on the basics, then move on to the exam-level questions that top scorers in CBSE Board exams get right.
To score well in "Sectors of the Indian Economy", focus on dates, cause and effect, and reading maps and sources. Each MCQ here is timed and uses exam-style marking (+4 correct, −1 wrong, 0 skipped). This helps you stay accurate when time is short, just as real papers need. Every question has a short explanation, so a wrong answer becomes a quick lesson. It is the fastest way to fix gaps before a test.
Use this chapter for focused revision. Start with the Easy set to check your basics on Sectors of the Indian Economy, then move to Medium and Hard to practise applying them. Your accuracy, streaks and XP save automatically. This chapter also adds to your overall Class 10 Economics mastery score. Try the 6 sample questions below: tap an option to see the answer and a worked explanation. Sign in free to start practising.
Sectors of the Indian Economy — important questions & MCQs with answers (Class 10 Economics)
6 solved questions from this chapter's difficulty levels, each with its answer and explanation. Tap an option to check yourself.
0 of 6 answered
- Q1 of 6Easy
Agriculture belongs to the ___ sector.
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Answer: Primary
Explanation: Primary uses natural resources directly.
- Q2 of 6Easy
Railways in India are mainly owned and run by the:
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Answer: Public (government) sector
Explanation: In the public sector the government owns most assets and provides services like the Railways.
- Q3 of 6Medium
Organised sector is characterised by:
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Answer: Regulated jobs with fixed hours, salary, benefits
Explanation: Registered, follows labour laws.
- Q4 of 6Medium
Assertion (A): Workers in the organised sector have to be paid overtime by the employer if they work more than the fixed hours. Reason (R): Organised-sector enterprises are registered by the government and have to follow its rules and regulations given in various laws.
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Answer: Both A and R are true and R is the correct explanation of A
Explanation: Because organised-sector enterprises are registered and must follow laws such as the Factories Act and the Minimum Wages Act, their workers work fixed hours and must be paid overtime for extra work. So R explains A.
- Q5 of 6Hard
The chapter gives reasons why the tertiary sector is becoming so important in India. Which of the following is/are among them? I. In any country, basic services such as hospitals, educational institutions, courts, banks and transport are required. II. Development of agriculture and industry leads to the development of services such as transport, trade and storage. III. Production in the primary and secondary sectors has fallen, so services are the only sector still growing.
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Answer: I and II only
Explanation: The chapter says basic services are required in any country, and greater development of agriculture and industry raises the demand for transport, trade and storage. III is wrong: between 1977–78 and 2017–18 production increased in all three sectors, though most in the tertiary sector.
- Q6 of 6Hard
Read the passage and answer the question. Nearly half of India's children are malnourished and a quarter of them are critically ill. The infant mortality rate of Odisha (36) or Madhya Pradesh (43) is higher than that of some of the poorest regions of the world. The chapter uses these facts to support which idea?
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Answer: Health facilities for all are a primary duty of the government
Explanation: The chapter gives these facts while explaining that providing health and education facilities for all is a primary responsibility of the government, which must also spend more on the poorest and most ignored regions.
Sectors of the Indian Economy notes: key concepts (Class 10 Economics)
This chapter classifies the economy three ways — by activity (primary, secondary, tertiary), by conditions of work (organised, unorganised) and by ownership (public, private). It explains GDP, why the tertiary sector dominates GDP while most workers stay in the primary sector, underemployment, and MGNREGA's right to work.
| Classified by | Sectors | Example |
|---|---|---|
| Nature of activity | Primary, secondary, tertiary | Cotton farmer, garment factory worker, call centre worker |
| Conditions of employment | Organised, unorganised | Appointment letter and paid leave vs roadside vendor |
| Who owns assets and delivers services | Public, private | Railways vs TISCO or Reliance |
- 1A farmer sells wheat to a flour mill at Rs 20 per kg
- 2The mill sells flour to a biscuit company at Rs 25 per kg
- 3The company sells four packets of biscuits to consumers for Rs 80
- 4GDP counts only the final good: Rs 80, which already includes the flour and wheat
- 5Adding Rs 20 + Rs 25 + Rs 80 = Rs 125 would count the same things many times
| Organised | Unorganised | |
|---|---|---|
| Rules | Registered; follows rules given in various laws | Small, scattered units outside government control |
| Work | Regular jobs, fixed hours; overtime paid | Low pay, no job security |
| Benefits | Paid leave, provident fund, gratuity, pension | No allowances, no paid leave |
| Example | A worker with an appointment letter | Kamal, daily wage labourer in a grocery shop |
| Tertiary workers, late 1990s | 40 million | 88 million |
| Sector | Production rose | Employment rose |
|---|---|---|
| Industry | More than nine times | Around three times |
| Services | 14 times | Around five times |
- Three sectors by activity
- Primary (agriculture, mining, fishing) uses nature, secondary (manufacturing) transforms goods, tertiary (services like banking, transport) supports the other two.
- Gross Domestic Product (GDP)
- The value of all final goods and services produced in the three sectors within a country in one year; the measure of the economy's total size.
- Final vs intermediate goods
- GDP counts only final goods; intermediate goods (like flour used to bake bread) are excluded to avoid double-counting their value.
- Shifting sector importance
- Historically importance shifted from primary to secondary to tertiary; in India the tertiary sector now produces the largest share of GDP.
- Employment vs GDP mismatch
- The tertiary sector leads in GDP but the primary sector still employs the most workers — showing disguised unemployment and low farm productivity.
- Organised sector
- Registered enterprises with regular jobs, fixed hours, appointment letters, paid leave and social security; terms of work are governed by law.
- Unorganised sector
- Small, scattered units outside government control with low pay, no job security or benefits — daily-wage workers, vendors, helpers; it employs most Indians.
- Public sector
- Government owns assets and provides services, aiming at public welfare (roads, dams, water, railways), not profit.
- Private sector
- Individuals or companies own assets and deliver services, with profit as the main motive; e.g. private mills and firms.
- Disguised unemployment
- Also called underemployment: more people work on a task than needed, so removing some would not lower output — common on family farms.
- MGNREGA 2005
- The Mahatma Gandhi National Rural Employment Guarantee Act promises 100 days of wage employment a year and is a step toward the Right to Work.
- Unemployment allowance
- Under MGNREGA, if the government cannot provide work within 15 days of applying, the applicant is entitled to an unemployment allowance.
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Sectors of the Indian Economy — FAQs
What are the key concepts in Class 10 Economics Sectors of the Indian Economy?+
This chapter classifies the economy three ways — by activity (primary, secondary, tertiary), by conditions of work (organised, unorganised) and by ownership (public, private). It explains GDP, why the tertiary sector dominates GDP while most workers stay in the primary sector, underemployment, and MGNREGA's right to work. Key ideas include Three sectors by activity, Gross Domestic Product (GDP), Final vs intermediate goods, Shifting sector importance, Employment vs GDP mismatch, Organised sector.
What does Class 10 Economics Chapter 2 (Sectors of the Indian Economy) cover on XamBaaz?+
It has 62 NCERT-based MCQs on "Sectors of the Indian Economy": 20 Easy, 22 Medium and 20 Hard. Together they make 6 timed quizzes, and you never get the same set twice. Every question has an instant explanation. They help you prepare for CBSE Board exams.
Are these "Sectors of the Indian Economy" questions free to practise?+
Yes. Sign in with Google to practise "Sectors of the Indian Economy" free. Full unlimited access is ₹999/year. One year from the day you pay. You stay in Class 10 till 31 March; on 1 April your account moves up to Class 11 and the rest of your year carries over. No chapter is charged separately.
How should I revise "Sectors of the Indian Economy" for the exam?+
Start with the Easy quiz to check your basics, then try Medium and Hard to practise applying them. There are 6 timed quizzes on this chapter, so you can come back for a fresh set instead of one you have seen. Read each explanation, retry the questions you miss, and track your accuracy until it stays high.
Are these "Sectors of the Indian Economy" MCQs available with answers?+
Yes. 6 sample questions are on this page with answers: tap an option, or "Show answer", to see the correct option and a step-by-step explanation. Sign in free with Google to start practising, with instant scoring.
Is there negative marking in the "Sectors of the Indian Economy" quizzes?+
Yes. The timed quizzes use exam-style marking: +4 for a right answer, −1 for a wrong one and 0 for a skip. MHT-CET and CBSE board papers have no negative marking. Our mocks for those are scored their way.
What are the important questions from Sectors of the Indian Economy (Class 10 Economics)?+
The questions that matter most test Three sectors by activity, Gross Domestic Product (GDP), Final vs intermediate goods, Shifting sector importance, Employment vs GDP mismatch, Organised sector. This page shows 6 solved important MCQs with answers and explanations. Sign in to practise all 62 questions on the chapter as timed quizzes.
Is there an online quiz for Sectors of the Indian Economy?+
Yes — Class 10 Economics Sectors of the Indian Economy has timed online quizzes at Easy, Medium and Hard levels, with instant scoring and a worked explanation on every question. The first quiz on the chapter is free.
Are there question answers and extra questions for Sectors of the Indian Economy (Class 10 Economics)?+
Yes. This page has 6 solved questions on Sectors of the Indian Economy, each with the correct answer and a short explanation. Sign in to practise all 62 questions on the chapter as timed quizzes.
Are there assertion–reason and case study questions for Sectors of the Indian Economy (Class 10 Economics)?+
Yes. The Sectors of the Indian Economy question bank has 6 assertion–reason questions and 3 case-based (case study) questions in the CBSE board format, alongside the regular MCQs. Each comes with the answer and a worked explanation. Sign in to practise them in timed quizzes.