Classification of Indian Economy Questions and Answers

Multiple Choice Questions and Answers (MCQ) on Classification of Indian Economy for Civil Services Examinations

Question 1 : Which among the following sectors contributes most to the GDP of India?

a) Primary sector

b) Secondary sector

c) Tertiary sector

d) Industrial Sector

Answer : c

Question 2 : Capital deepening refers to 

a) Going for more fixed capital per worker

b) Emphasis on social overhead capital

c) Constant capital-output ratio

d) Increasing capital-output ratio

Answer : a

Question 3 : In the recent years, shares of agriculture, industry , and services in the gross domestic product (GDP) of India have roughly reached the ratio of (respectively)

a) 20 : 20 : 60

b) 15 : 25 : 60

c) 25 : 20 : 55

d) 25 : 25 : 50

Answer : b

Question 4 : Which one among the following sectors in India has the highest share of employment?

a) Agriculture and allied activities

b) Manufacturing

c) Construction

d) Services

Answer : a

Question 5 : In India, the share of agriculture in GDP has declined at a very fast rate in the recent years. This is due to 

a) Lack of diversification of rural economy

b) Slow growth in the prices of agricultural commodities

c) Saturation of employment opportunities in the agriculture sector

d) Very slow growth rate of agriculture and a fast growth rate of other sectors

Answer : d

Question 6 : One of the reasons for India’s occupational structure more or less the same over the years has been that

a) Investment pattern has been directed towards capital-intensive industries

b) Productivity in agriculture has been high enough to induce people to stay with agriculture

c) Ceiling on land holdings has enabled more people to own land and hence their preference to stay with agriculture

d) Large chunk of the workforce lacks skills for transition form agriculture to industry

Answer : d

Question 7 : Which one of the following is not part of the service sector in India?

a) Transport

b) Construction

c) Hotels and restaurants

d) Insurance

Answer : b

Question 8 : Which one of the following is the correct sequence of GDP composition by sector in India?

a) Services > Industry > Agriculture

b) Industry > Services > Agriculture

c) Agriculture > Services > Industry

d) Agriculture > Industry > Services

Answer : a

Question 9 : Which of the following best describes “care economy”?

a) It is an economic system in which deliberate attention is paid to good governance policies for the dependent population

b) It consists of the work done by women at home taking care of the household chores.

c) It is an economic system in which  genuine care for people and nature is the top priority.

d) It refers to the philosophy of making investments in demographic dividend to ensure better economic results in the future.

Answer : b

Question 10 : In India, rural incomes are generally lower than urban incomes. Which of the following reasons account for this?

  1. A large number of farmers know little about scientific agriculture
  2. Prices of primary products are lower than those of manufactured products
  3. Investment in agriculture has been low when compared to investment in industry

Select the correct answer by using the codes given below:

a) 1, 2 and 3

b) 1 and 2

c) 1 and 3

d) 2 and 3

Answer : a

Question 11 : Consider the following statements:

Regional disparities in India are because

  1. There is persistent investment over time only in select localities
  2. Some areas are agro-climatically less conducive to development
  3. Some areas have faced continuous insurgency

Which of the statements given above are correct?

a) 1, 2 and 3

b) 1 and 2

c) 2 and 3

d) 1 and 3

Answer : a

Question 12 : Industrial development in India, in contrast to China, is constrained by

  1. Lack of adequate entrepreneurship skills
  2. Low savings rate in Indian economy
  3. Lack of technology, skills, and infrastructure
  4. Limited purchasing power among the masses

Which of the statements given above are correct?

a) 1, 2 and 3

b) 1, 3, and 4

c) 2, 3 and 4

d) 1, 2, 3 and 4

Answer : b

Question 13 : Which of the following services are accounted in the gross domestic product of a country?

  1. Services rendered by a domestic help
  2. Services rendered by a worker from unorganised sector
  3. Services produced in Indian embassies located abroad
  4. Services produced in foreign military establishment located in India

Select the correct answer using the codes given below:

a) 1 and 2 only

b) 1, 2, and 3 only

c) 2, 3 and 4 only

d) 1, 2, 3 and 4

Answer : d

Question 14 : Consider the following statements:

  1. The size the tertiary sector in the United States is more than 10 times the size of the tertiary sector in India
  2. The size of the secondary sector in China is more than eight times the size of the secondary sector in India
  3. The size of the tertiary sector in India is more than four times the size of the primary sector.

Which of the statements given above are correct?

a) 1, 2, and 3

b) 1 and 2

c) 2 and 3

d) 1 only

Answer : a

Question 15 : Income level is high in urban areas compared to rural areas because

  1. The productivity of land in rural areas has reduced with the passage of time
  2. The rural population is engaged in the primary sector and the urban population is engaged in the secondary and tertiary sector
  3. The level of education and employment opportunities in urban areas is far higher than that in rural areas

Which of he statements given above are correct?

a) 1, 2 and 3

b) 1 and 3

c) 2 and 3

d) 2 only

Answer : c