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CBSE Class 10 Social Science Chapter 19 Sectors of the Indian Economy — 20 MCQs with Answers
Sectors of the Indian Economy is a core chapter in the NCERT Class 10 Social Science Economics syllabus, carrying 3–4 MCQs in the board paper. The chapter introduces the classification of economic activities into primary, secondary and tertiary sectors, and distinguishes between organised and unorganised employment. Practising focused MCQs sharpens recall of definitions, data interpretation and real-world application — all tested in CBSE papers since 2023.
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Key takeaways
- ✓Chapter 19 tests understanding of the three-sector classification: primary (agriculture, mining), secondary (manufacturing, construction) and tertiary (services).
- ✓Organised sector employees enjoy job security, fixed hours and benefits; unorganised sector workers lack legal protection and social security.
- ✓GDP contribution from the tertiary sector in India now exceeds that of primary and secondary sectors combined.
- ✓Employment in India remains highest in the primary sector despite its shrinking share in GDP — a critical exam point.
- ✓Assertion-reason MCQs appear frequently; read both statements independently before choosing the correct option.
- ✓CBSE awards 1 mark per MCQ with no negative marking; attempt every question after eliminating obviously incorrect options.
Primary, Secondary and Tertiary Sectors — Definition & Classification MCQs
Understanding sector definitions is the foundation of this chapter. The primary sector involves extraction of natural resources (agriculture, forestry, fishing, mining). The secondary sector covers manufacturing and construction — converting raw materials into finished goods. The tertiary sector includes all services: banking, transport, trade, education and healthcare. CBSE MCQs often ask you to classify an occupation or identify which sector contributes most to GDP versus employment. Remember that sectors are interdependent; for instance, cotton (primary) is spun into yarn (secondary) and sold in retail shops (tertiary).
- Q1. Which of the following activities belongs to the primary sector? (A) Baking bread in a factory (B) Cutting trees for timber (C) Selling vegetables in a market (D) Teaching in a school — Answer: (B) Cutting trees for timber. Reason: Timber extraction is a natural-resource activity, characteristic of the primary sector.
- Q2. A software engineer working from home is part of the: (A) Primary sector (B) Secondary sector (C) Tertiary sector (D) Quaternary sector — Answer: (C) Tertiary sector. Reason: IT services fall under tertiary activities, regardless of work location.
- Q3. Assertion (A): The tertiary sector does not produce goods. Reason (R): The tertiary sector is also called the service sector. (A) Both A and R are true; R is the correct explanation of A (B) Both A and R are true; R is not the correct explanation of A (C) A is true but R is false (D) A is false but R is true — Answer: (A). Reason: Tertiary activities provide services, not tangible goods, hence the name service sector.
- Q4. Identify the correct sequence of sectors involved in producing a cotton shirt sold in a retail store: (A) Primary → Tertiary → Secondary (B) Secondary → Primary → Tertiary (C) Primary → Secondary → Tertiary (D) Tertiary → Secondary → Primary — Answer: (C) Primary → Secondary → Tertiary. Reason: Cotton farming (primary) → textile manufacturing (secondary) → retail sale (tertiary).
GDP and Employment Distribution Across Sectors — Data-Based MCQs
A recurring CBSE exam theme is the contrast between sectoral share in GDP and share in employment. As per recent NCERT data, the tertiary sector contributes over 50 per cent to India's GDP, yet the primary sector still employs nearly 45 per cent of the workforce — a phenomenon called 'disguised unemployment' in agriculture. The secondary sector contributes roughly a quarter of GDP and employs about 25 per cent of workers. In MCQs, you may be given a pie chart or bar graph and asked to infer trends, compare sectors or explain why employment has not shifted as rapidly as output. Always read the graph axes and legend carefully before marking your answer.
- Q5. Which sector contributes the maximum to India's GDP as of recent NCERT data? (A) Primary (B) Secondary (C) Tertiary (D) All three contribute equally — Answer: (C) Tertiary. Reason: Services account for more than half of national GDP.
- Q6. Despite contributing less than 20 per cent to GDP, the primary sector employs nearly 45 per cent of the workforce. This indicates: (A) High productivity in agriculture (B) Disguised unemployment in agriculture (C) Migration from cities to villages (D) Decline in tertiary jobs — Answer: (B) Disguised unemployment in agriculture. Reason: Many workers share the same farm output; removing some would not reduce production.
- Q7. Between 1973-74 and 2013-14, which sector saw the sharpest rise in GDP share? (A) Primary (B) Secondary (C) Tertiary (D) None, all remained constant — Answer: (C) Tertiary. Reason: Tertiary sector GDP share rose from about 35% to over 50%.
- Q8. A bar graph shows primary sector employment at 44%, secondary at 25%, tertiary at 31%. Which sector employs the most people? (A) Primary (B) Secondary (C) Tertiary (D) Secondary and Tertiary equally — Answer: (A) Primary. Reason: 44% is the highest share among the three.
Organised vs Unorganised Sector — Legal Protection & Working Conditions MCQs
The organised sector comprises enterprises registered with the government — employees receive appointment letters, fixed working hours, paid leave, provident fund, gratuity and protection under labour laws. Examples include government offices, PSUs, registered private companies. The unorganised sector includes small-scale, often unregistered units: street vendors, domestic workers, agricultural labourers, casual construction workers. These workers lack job security, social security benefits and may be paid below minimum wage. NCERT emphasises that over 90 per cent of India's workforce is in the unorganised sector, making this a high-weight exam topic. MCQs may present a job scenario and ask you to classify it or suggest a government scheme to formalise unorganised workers.
- Q9. Which of the following is a feature of the organised sector? (A) No fixed working hours (B) Job security and regular salary (C) Wages below minimum wage (D) No medical or pension benefits — Answer: (B) Job security and regular salary. Reason: Organised-sector employees enjoy legal protections and formal contracts.
- Q10. A domestic worker employed in a household belongs to: (A) Organised, primary sector (B) Unorganised, tertiary sector (C) Organised, tertiary sector (D) Unorganised, secondary sector — Answer: (B) Unorganised, tertiary sector. Reason: Domestic help is a service (tertiary) without formal registration (unorganised).
- Q11. Which government scheme aims to provide social security to unorganised workers? (A) MGNREGA (B) Mid-Day Meal (C) National Pension Scheme for Traders and Self-Employed (D) Both A and C — Answer: (D) Both A and C. Reason: MGNREGA guarantees rural employment; NPS for traders offers pension to unorganised workers.
- Q12. Assertion (A): Workers in the unorganised sector do not get regular income. Reason (R): Unorganised sector enterprises are registered under government laws. (A) Both A and R are true; R explains A (B) Both true; R does not explain A (C) A is true, R is false (D) A is false, R is true — Answer: (C) A is true, R is false. Reason: Unorganised units are typically not registered, hence workers lack regular income and benefits.
Public vs Private Sector and Role of Government — Concept Application MCQs
Public-sector enterprises are owned and operated by the government — examples include Indian Railways, BHEL, post offices. Their primary aim is public welfare, not profit maximisation. Private-sector firms are owned by individuals or companies and operate for profit — Tata Motors, Reliance, local kirana shops. NCERT explains that certain activities essential for development (building infrastructure, ensuring universal education, providing healthcare in remote areas) require government intervention because private players may find them unprofitable. MCQs test whether you can identify ownership, justify government presence in a sector or suggest privatisation based on efficiency arguments. Recent board papers also include assertion-reason pairs on the role of public sector in reducing regional inequality.
- Q13. Indian Railways is an example of: (A) Private sector, tertiary (B) Public sector, tertiary (C) Public sector, secondary (D) Organised, unorganised mix — Answer: (B) Public sector, tertiary. Reason: Owned by the Government of India and provides transport services.
- Q14. The main objective of public-sector enterprises is: (A) Profit maximisation (B) Social welfare and public good (C) Competing with foreign firms (D) Reducing government expenditure — Answer: (B) Social welfare and public good. Reason: Public sector prioritises equitable access over profit.
- Q15. Construction of roads and bridges in remote hilly areas is undertaken by the government because: (A) Private companies earn high profits there (B) It is not profitable for private firms but essential for development (C) Government wants to compete with private players (D) Private players are banned by law — Answer: (B) It is not profitable for private firms but essential for development. Reason: Infrastructure in low-density areas has poor revenue potential, requiring public investment.
- Q16. Which of the following is a private-sector activity? (A) Issue of currency notes (B) Running a private coaching centre (C) Operating post offices (D) National defence — Answer: (B) Running a private coaching centre. Reason: Education services can be privately owned and operated for profit; the others are government monopolies or duties.
Real-World Application, Case Studies and Higher-Order Thinking MCQs
CBSE increasingly includes application-based and HOTS questions in the MCQ section. You may be given a brief case — a farmer selling produce, a factory worker's wage dispute, a small tea-stall owner's working conditions — and asked to identify the sector, suggest remedies or justify government intervention. Assertion-reason MCQs often combine two related statements; read each independently, then check if the reason logically explains the assertion. For example, 'Assertion: MGNREGA provides 100 days of guaranteed wage employment. Reason: It aims to enhance livelihood security in rural areas.' Both are true and R explains A. Practise distinguishing correlation from causation. Another common HOTS pattern: 'Which of the following does NOT belong?' — one option will be from a different sector or employment category. Such questions reward careful reading and conceptual clarity rather than rote memory.
- Q17. Ramesh works in a small roadside tea stall with no written contract and earns ₹200 per day. His employment is best classified as: (A) Organised, primary (B) Organised, tertiary (C) Unorganised, tertiary (D) Unorganised, secondary — Answer: (C) Unorganised, tertiary. Reason: Tea-stall service is tertiary; lack of contract indicates unorganised employment.
- Q18. Assertion (A): MGNREGA is implemented in rural areas to provide wage employment. Reason (R): It enhances livelihood security and creates rural assets. (A) Both true; R explains A (B) Both true; R does not explain A (C) A true, R false (D) A false, R true — Answer: (A) Both true; R explains A. Reason: MGNREGA's design is to offer employment and simultaneously build community infrastructure.
- Q19. Which of the following does NOT belong to the secondary sector? (A) Sugar mill (B) Textile factory (C) Construction of a flyover (D) Cyber café offering internet services — Answer: (D) Cyber café offering internet services. Reason: Cyber café is a service (tertiary); the others manufacture or construct goods.
- Q20. A state government decides to take over a loss-making private bus company to ensure connectivity in tribal areas. This decision reflects the principle that: (A) Privatisation always fails (B) Public sector focuses on welfare even if not profitable (C) Government wants to compete in all sectors (D) Private players should be banned — Answer: (B) Public sector focuses on welfare even if not profitable. Reason: Essential services in underserved regions justify government ownership despite losses.
How to Attempt MCQs in the CBSE Class 10 Social Science Paper — Strategy & Tips
The 2025 CBSE Class 10 Social Science paper carries 20 one-mark MCQs across all four disciplines (History, Geography, Political Science, Economics). Chapter 19 typically contributes 3–4 questions. There is no negative marking, so never leave an MCQ blank. Start by reading the question stem carefully — underline keywords like 'primary sector', 'organised', 'public sector'. Eliminate obviously wrong options first; often two choices can be ruled out immediately. For assertion-reason MCQs, evaluate the assertion independently, then the reason, and finally check if R explains A. If a data-interpretation question accompanies a graph or table, check units, time periods and legends before selecting an answer. Budget roughly 20 seconds per MCQ; if stuck, mark your best guess and move on — you can revisit during the final review. Practising 15–20 MCQs per chapter builds speed and pattern recognition. CBSETUTOR.ai offers an adaptive MCQ bank where you can upload a photo of any NCERT diagram or table and get instant explanations and similar practice questions — all within the ₹999/month plan covering Classes 6–12 with a 3-day free trial.
- Read the question stem and all four options before marking; hasty selection causes avoidable errors.
- Underline or mentally note keywords: 'organised vs unorganised', 'primary vs tertiary', 'public vs private'.
- Eliminate two obviously incorrect options first; choose between the remaining two using logic or NCERT definitions.
- For assertion-reason MCQs, verify each statement separately, then check causality — does R logically explain A?
- Attempt every MCQ; there is no negative marking, so an educated guess is better than leaving it blank.
- If a graph or table is provided, read the title, axes labels and legend before interpreting data.
- Allocate 15–20 seconds per MCQ; mark doubtful ones for review and return if time permits.
Frequently asked questions
How many MCQs from Chapter 19 Sectors of the Indian Economy appear in the CBSE Class 10 board exam?+
Typically 3–4 one-mark MCQs are drawn from this chapter in the Economics section of the Social Science paper, as per the blueprint released by CBSE for 2024–25.
What is the difference between primary, secondary and tertiary sectors?+
Primary sector extracts natural resources (farming, mining). Secondary sector manufactures goods (factories, construction). Tertiary sector provides services (banking, education, transport).
Why does the primary sector employ the most people despite contributing less to GDP?+
Disguised unemployment in agriculture means many workers share the same low output. Removing surplus labour would not reduce production, so employment remains high even as GDP share falls.
What are the main features of the organised sector?+
Organised sector workers enjoy job security, fixed hours, regular salary, paid leave, provident fund, gratuity and legal protection under labour laws. Enterprises are registered with the government.
Give two examples of unorganised sector employment.+
Domestic workers in households and daily-wage labourers at construction sites are both unorganised-sector employees, lacking contracts and social security benefits.
How does MGNREGA help unorganised sector workers?+
MGNREGA guarantees 100 days of wage employment per year to rural households, providing income security and creating community assets like roads and ponds, thereby supporting the unorganised workforce.
What is the role of the public sector in economic development?+
Public sector undertakes activities essential for welfare — infrastructure, education, healthcare — that may not be profitable for private players. It also reduces regional inequalities and provides employment.
Can a job be in the organised sector but belong to the primary or secondary sector?+
Yes. For example, a government-employed forest officer (organised, primary) or a worker in a registered automobile factory (organised, secondary) both have formal contracts and benefits.
How should I approach assertion-reason MCQs in this chapter?+
Read the assertion independently and decide if it is true. Then read the reason and check its truth. Finally, determine whether the reason correctly explains the assertion. Choose the option that matches all three checks.
Where can I practise more MCQs for Sectors of the Indian Economy with instant feedback?+
CBSETUTOR.ai offers an adaptive MCQ practice module. Upload a photo of any NCERT page or diagram, and the AI tutor generates similar questions with step-by-step explanations — available at ₹999/month for all subjects in Classes 6–12, with a 3-day free trial.
Related resources
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