Statement based Questions – Sectors of the Indian Economy

CBSE Class 10 Economics- English Medium / By /

Instructions

For each question, read the following statements carefully and select the correct option.

  • (A) Both Statements 1 and 2 are correct.
  • (B) Both Statements 1 and 2 are incorrect.
  • (C) Statement 1 is correct, but Statement 2 is incorrect.
  • (D) Statement 1 is incorrect, but Statement 2 is correct.

The detailed answer key with explanations and the consolidated tabular answer key are given only at the end. The answer options are arranged so that no two consecutive questions have the same correct answer.

Topic 1: Primary, Secondary and Tertiary Sectors

Q1. Consider the following statements:

  1. Agriculture, fishing and forestry are activities of the primary sector.
  2. Manufacturing converts raw materials into products and belongs to the secondary sector.

Select the correct option.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q2. Consider the following statements:

  1. Banking is classified under the primary sector because it deals with money.
  2. Transport is classified under the secondary sector because it helps move manufactured goods.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q3. Consider the following statements:

  1. The tertiary sector includes activities that provide services.
  2. Mining is a tertiary-sector activity because minerals are used by industries.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q4. Consider the following statements:

  1. The three sectors of the economy function entirely independently of one another.
  2. Agriculture, manufacturing and transport can depend on one another during production and distribution.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 2: Comparing the Three Sectors

Q5. Consider the following statements:

  1. The contribution of a sector to GDP can differ from its share in total employment.
  2. A sector employing the largest number of people must always contribute the largest share to GDP.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q6. Consider the following statements:

  1. Every worker in the tertiary sector earns more than every worker in the primary sector.
  2. The tertiary sector includes both highly paid professionals and low-paid workers.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q7. Consider the following statements:

  1. The secondary sector includes manufacturing activities.
  2. The primary sector is the only sector that contributes to the production of goods.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q8. Consider the following statements:

  1. The tertiary sector includes services such as education and healthcare.
  2. The tertiary sector has no connection with the production activities of the primary and secondary sectors.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 3: Historical Change in the Importance of Sectors

Q9. Consider the following statements:

  1. Agriculture was a major source of livelihood in the early stages of economic development.
  2. Economic development can change the relative contributions of the three sectors to GDP.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q10. Consider the following statements:

  1. The contribution of the tertiary sector can never increase as an economy develops.
  2. Growth in banking, transport, education and communication can increase the importance of services.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q11. Consider the following statements:

  1. Industrialisation can increase the contribution of manufacturing to GDP.
  2. Industrialisation always eliminates the need for agricultural production.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q12. Consider the following statements:

  1. An increase in population necessarily increases the primary sector’s share of GDP.
  2. Changes in productivity and demand can alter the relative importance of economic sectors.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 4: Where Are Most of the People Employed?

Q13. Consider the following statements:

  1. Agriculture may employ many workers despite contributing a relatively small share to GDP.
  2. Low productivity and underemployment can help explain this difference.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q14. Consider the following statements:

  1. A sector employing the most people must always generate the highest value added per worker.
  2. GDP contribution depends on the value of final goods and services produced.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q15. Consider the following statements:

  1. Disguised unemployment can occur when some workers can leave an activity without reducing its output.
  2. Every additional worker on a farm necessarily increases output by the same amount.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q16. Consider the following statements:

  1. Employment outside agriculture cannot help address surplus labour in farming.
  2. Manufacturing and service activities can provide alternative employment opportunities.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 5: How to Create More Employment?

Q17. Consider the following statements:

  1. Better irrigation can support multiple cropping and create additional demand for agricultural labour.
  2. Rural infrastructure such as roads and storage facilities can support economic activities and employment.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q18. Consider the following statements:

  1. Only large-scale factories can create employment in India.
  2. Small-scale industries and rural services can also generate employment.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q19. Consider the following statements:

  1. Providing credit to small entrepreneurs guarantees the success of their businesses.
  2. Access to credit can help entrepreneurs establish or expand productive activities.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q20. Consider the following statements:

  1. Improving rural roads can connect producers to markets.
  2. Employment generation requires attention only to agricultural activities.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 6: Organised Sector

Q21. Consider the following statements:

  1. Organised-sector establishments are registered and subject to applicable government regulations.
  2. Workers in the organised sector are generally more likely to receive formal employment benefits and legal protection.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q22. Consider the following statements:

  1. Every organised-sector employee must work for the government.
  2. Organised-sector employment can exist in both public and private enterprises.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q23. Consider the following statements:

  1. A registered private company can be part of the organised sector.
  2. Every private enterprise belongs to the unorganised sector.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q24. Consider the following statements:

  1. Organised-sector workers can never lose their jobs.
  2. Organised-sector workers may receive benefits such as paid leave and social security, subject to applicable rules.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 7: Unorganised Sector

Q25. Consider the following statements:

  1. Unorganised-sector workers may face irregular employment and limited job security.
  2. Lack of formal employment arrangements can increase their economic vulnerability.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q26. Consider the following statements:

  1. Every unorganised-sector worker is self-employed.
  2. The unorganised sector includes casual wage labourers and self-employed workers.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q27. Consider the following statements:

  1. Unorganised-sector workers may need government protection against exploitation.
  2. All unorganised-sector workers receive the same wages and benefits as organised-sector workers.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q28. Consider the following statements:

  1. A worker in the unorganised sector is necessarily unemployed.
  2. Many unorganised-sector workers are employed but face insecure working conditions.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 8: How to Protect Workers in the Unorganised Sector?

Q29. Consider the following statements:

  1. Enforcing minimum-wage laws can help prevent the exploitation of vulnerable workers.
  2. Access to social security can provide support during illness, old age or loss of income.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q30. Consider the following statements:

  1. Workplace safety is unrelated to worker protection.
  2. Safer working conditions can reduce the risk of workplace injuries and illness.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q31. Consider the following statements:

  1. Legal protection can help workers claim their employment rights.
  2. Unorganised-sector workers do not need protection because they are always self-employed.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q32. Consider the following statements:

  1. Government protection should be restricted to organised-sector workers.
  2. Unorganised-sector workers may face low wages, irregular employment and poor working conditions.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 9: Public Sector

Q33. Consider the following statements:

  1. Public-sector enterprises are owned or controlled by the government.
  2. The government may operate enterprises to provide essential services and promote public welfare.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q34. Consider the following statements:

  1. Every public-sector service must be provided free of cost.
  2. Some public services are provided free or at subsidised rates, while others charge fees.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q35. Consider the following statements:

  1. Public investment can support development even when immediate financial returns are limited.
  2. The public sector must always maximise profits regardless of public needs.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q36. Consider the following statements:

  1. Public-sector enterprises are always more efficient than private-sector enterprises.
  2. Public-sector enterprises may have objectives beyond profit, including public welfare and essential service provision.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 10: Private Sector

Q37. Consider the following statements:

  1. Private-sector enterprises are generally owned by individuals or private organisations.
  2. Earning profit is an important objective of most private-sector enterprises.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q38. Consider the following statements:

  1. Private businesses cannot create employment.
  2. Private enterprises can hire workers to produce goods and provide services.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q39. Consider the following statements:

  1. A privately owned hospital belongs to the public sector simply because healthcare is an essential service.
  2. The ownership or control of an enterprise is a key basis for distinguishing the public and private sectors.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q40. Consider the following statements:

  1. Private enterprises must provide all their services free of charge.
  2. Private enterprises generally seek revenue from the goods or services they provide.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 11: Difference Between Public and Private Sectors

Q41. Consider the following statements:

  1. Government ownership or control is a key characteristic of the public sector.
  2. A government-owned railway enterprise belongs to the private sector because it provides transport services.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q42. Consider the following statements:

  1. Public and private sectors cannot both contribute to economic development.
  2. Public and private enterprises can both produce goods, provide services and generate employment.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q43. Consider the following statements:

  1. Two enterprises producing similar goods must have the same ownership structure.
  2. Enterprises producing similar goods may belong to different ownership sectors.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q44. Consider the following statements:

  1. Private enterprises can contribute to employment and service provision.
  2. The private sector includes only businesses owned by the central government.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 12: The Role of the Public Sector

Q45. Consider the following statements:

  1. The government may provide essential services when private businesses do not supply them sufficiently or affordably.
  2. Public investment in education, healthcare and infrastructure can support economic development.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q46. Consider the following statements:

  1. Public-sector enterprises should consider only profit and ignore social welfare.
  2. Government investment in roads and schools can improve connectivity and human capabilities.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q47. Consider the following statements:

  1. The government may need to invest in essential services to make them accessible to disadvantaged groups.
  2. Essential services should be provided only to people who can pay the full market price.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q48. Consider the following statements:

  1. Private enterprises can always provide every essential service to everyone at affordable prices.
  2. Government involvement can help improve access to essential services for people with limited purchasing power.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 13: Public Facilities and Government Responsibility

Q49. Consider the following statements:

  1. Safe drinking water and sanitation are important for public health.
  2. Public facilities can benefit entire communities and improve quality of life.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q50. Consider the following statements:

  1. Public facilities benefit only people who pay separately for every service.
  2. Public facilities may be financed through taxes and other public funds.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q51. Consider the following statements:

  1. Basic education can improve skills and support long-term economic development.
  2. Education guarantees every individual a high-paying job.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q52. Consider the following statements:

  1. Poor sanitation affects only the individual household where it occurs.
  2. Poor sanitation can spread disease and affect the health of the wider community.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 14: Gross Domestic Product (GDP)

Q53. Consider the following statements:

  1. GDP measures the value of final goods and services produced within a country’s domestic territory during a specified period.
  2. Counting final goods helps prevent the double counting of intermediate inputs.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q54. Consider the following statements:

  1. GDP includes only goods produced by the primary sector.
  2. GDP includes final goods and services produced across all three sectors.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q55. Consider the following statements:

  1. GDP growth can occur when the value of final goods and services produced increases.
  2. The value of every intermediate good must be added separately to the full value of final goods when calculating GDP.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q56. Consider the following statements:

  1. GDP directly reveals whether income is distributed equally among all citizens.
  2. GDP measures the value of final goods and services produced within a country’s domestic territory during a specified period.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 15: Final Goods and Services

Q57. Consider the following statements:

  1. Bread purchased by a household for consumption is generally a final good.
  2. The classification of a good depends partly on its intended use.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q58. Consider the following statements:

  1. A machine purchased as a capital asset for productive use is always an intermediate good.
  2. A machine purchased as a capital asset is generally treated as a final good in GDP accounting.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q59. Consider the following statements:

  1. All goods purchased by businesses are necessarily intermediate goods.
  2. Goods purchased by businesses may be final goods, depending on their intended use.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q60. Consider the following statements:

  1. A haircut provided to a customer is a service.
  2. Final services are excluded from GDP because they are not physical goods.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 16: Intermediate Goods and Double Counting

Q61. Consider the following statements:

  1. Counting the full value of wheat, flour and bread at every production stage can lead to double counting.
  2. The value of intermediate inputs is incorporated into the value of the final product.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q62. Consider the following statements:

  1. Intermediate goods have no economic value and therefore are excluded from GDP.
  2. Intermediate goods have economic value, but counting them separately alongside final goods can lead to double counting.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q63. Consider the following statements:

  1. Value added is calculated by subtracting the value of intermediate inputs from the value of output.
  2. Adding value added at each production stage can help avoid double counting.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q64. Consider the following statements:

  1. Counting the same intermediate value multiple times makes GDP more accurate.
  2. Double counting can overstate the actual value of production.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 17: Underemployment and Disguised Unemployment

Q65. Consider the following statements:

  1. Disguised unemployment can exist when some workers can leave an activity without reducing output.
  2. Underemployment can occur when a person works but their labour is not fully utilised.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q66. Consider the following statements:

  1. Underemployment occurs only when a person has no job.
  2. Disguised unemployment may occur when more people work on a farm than are necessary to maintain its output.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q67. Consider the following statements:

  1. A farm may have disguised unemployment if five workers can produce the same output as eight workers.
  2. The presence of surplus workers necessarily means that total farm output will fall.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q68. Consider the following statements:

  1. Disguised unemployment is impossible in rural areas.
  2. Disguised unemployment can occur when too many family members depend on limited agricultural work.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 18: Employment Generation

Q69. Consider the following statements:

  1. Investment in roads and irrigation can create direct and indirect employment opportunities.
  2. Economic growth automatically guarantees sufficient productive jobs for every person seeking work.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q70. Consider the following statements:

  1. Employment generation is unnecessary whenever GDP is increasing.
  2. Small-scale industries can help diversify employment opportunities in rural areas.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q71. Consider the following statements:

  1. Suitable non-farm employment can absorb surplus labour from agriculture.
  2. Moving surplus workers to productive non-farm jobs necessarily reduces agricultural production.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q72. Consider the following statements:

  1. Rural employment generation should focus exclusively on farming.
  2. Manufacturing, tourism, transport and other services can provide employment outside agriculture.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Topic 19: Rural Employment and MGNREGA

Q73. Consider the following statements:

  1. Under the original MGNREGA framework, eligible rural households demanding work were guaranteed at least 100 days of unskilled manual wage employment in a financial year.
  2. MGNREGA was intended to strengthen rural livelihood security and could support the creation of productive rural assets.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q74. Consider the following statements:

  1. MGNREGA was designed to provide permanent government jobs to every rural adult.
  2. Rural employment programmes can provide wage opportunities during periods of limited agricultural work.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q75. Consider the following statements:

  1. Rural employment programmes can support income security during agricultural off-seasons.
  2. Public works under employment programmes may help create or improve rural assets.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Q76. Consider the following statements:

  1. Rural employment programmes cannot contribute to village development.
  2. Rural employment programmes may provide wage employment and support the creation of useful community assets.

(A) Both Statements 1 and 2 are correct. (B) Both Statements 1 and 2 are incorrect. (C) Statement 1 is correct, but Statement 2 is incorrect. (D) Statement 1 is incorrect, but Statement 2 is correct.

Answer Key

Part 1: Detailed Answer Key with Explanations

Q. No.AnswerExplanation
1AAgriculture and fishing are primary activities; manufacturing belongs to the secondary sector. Both statements are correct.
2BBanking is a tertiary-sector activity, and transport is also a tertiary-sector activity. Both statements are incorrect.
3CThe tertiary sector provides services, but mining belongs to the primary sector.
4DThe sectors are interdependent; agricultural production, manufacturing and transport support one another.
5AEmployment share and GDP share can differ because productivity and value added differ across sectors.
6BTertiary-sector workers do not all earn more, and the sector includes workers with varied incomes.
7CManufacturing belongs to the secondary sector, but the primary sector is not the only sector producing goods.
8CEducation and healthcare are services, and the tertiary sector supports production in other sectors.
9AAgriculture was important in early economies, and economic development can alter sectoral contributions.
10DThe tertiary sector can grow as an economy develops, especially through expanding services.
11CIndustrialisation can increase manufacturing’s contribution, but agriculture remains necessary.
12DPopulation growth does not necessarily increase agriculture’s GDP share; productivity and demand also matter.
13AMany agricultural workers may produce relatively little value per worker due to underemployment and low productivity.
14DEmployment numbers do not determine value added per worker; GDP reflects the value of final output.
15CDisguised unemployment may exist, but each additional worker does not necessarily add equal output.
16DNon-farm employment can absorb surplus agricultural labour and improve labour utilisation.
17AIrrigation and rural infrastructure can both expand productive activity and create employment.
18DSmall-scale industries and services can also create employment; large factories are not the only source.
19DCredit does not guarantee success, although it can help entrepreneurs finance productive activities.
20CRoads improve market access, but employment generation also requires non-agricultural opportunities.
21ARegistration and regulation are features of the organised sector, where formal benefits are generally more likely.
22DOrganised employment exists in both public and private enterprises.
23CA registered private company may be organised; private ownership does not automatically imply unorganised status.
24DOrganised workers may receive benefits, but job security is not an absolute guarantee of lifelong employment.
25AIrregular employment and limited formal protections can increase economic vulnerability.
26DUnorganised-sector workers include wage labourers as well as self-employed people.
27CVulnerable workers may need protection, and their wages and benefits are not necessarily equal to those of organised workers.
28DUnorganised-sector workers may be employed but face insecure working conditions.
29AMinimum wages and social security can reduce exploitation and protect workers against financial risks.
30DWorkplace safety is essential because it can reduce injuries and occupational illness.
31CLegal protection helps workers claim rights, and unorganised workers may need protection whether wage-employed or self-employed.
32DProtection should not be restricted to organised workers; unorganised workers can face serious vulnerabilities.
33APublic-sector enterprises are government-owned or controlled and may serve public welfare objectives.
34DNot all public services are free; some are free or subsidised while others charge fees.
35CPublic investment can serve social needs, and the public sector does not always have to maximise profit.
36DPublic-sector efficiency is not always higher, although public enterprises may pursue wider welfare objectives.
37APrivate enterprises are generally privately owned and commonly seek profits.
38DPrivate businesses can employ workers and provide goods and services.
39DA hospital’s private ownership places it in the private sector, while ownership distinguishes public and private enterprises.
40DPrivate businesses generally earn revenue rather than providing all services free of charge.
41CGovernment ownership identifies the public sector; a government-owned railway does not become private because it provides transport.
42DBoth sectors can contribute to development, while ownership distinguishes them.
43DSimilar products can be produced by enterprises with different ownership structures.
44CPrivate enterprises can create employment, but the private sector is not owned by the central government.
45APublic provision can support essential services, while public investment can contribute to economic development.
46DGovernment investment in roads and schools can improve connectivity and human capabilities; public enterprises need not focus only on profit.
47CThe government may support access for disadvantaged groups, and essential services are not necessarily restricted to full-market-price customers.
48DPrivate provision does not guarantee affordable universal access; government involvement can improve access.
49ASafe water and sanitation support health, and public facilities can benefit whole communities.
50DPublic facilities can benefit people beyond those paying directly and may be funded through taxes.
51CEducation can support development, but it cannot guarantee a high-paying job for every individual.
52DPoor sanitation can spread disease beyond one household and affect the wider community.
53AGDP measures domestic production of final goods and services, and the final-goods approach avoids double counting.
54DGDP covers final production across all three sectors, not only primary-sector output.
55CIncreased final production can increase GDP, but intermediate goods should not be added separately to the full value of final goods.
56DGDP measures production, not whether income is equally distributed.
57ABread bought for household consumption is a final good, and intended use helps determine classification.
58DA capital machine is generally a final good in GDP accounting, not an intermediate good.
59DBusinesses can purchase final goods, including capital equipment; not all business purchases are intermediate goods.
60CA haircut is a service, but final services are included in GDP.
61ACounting the full value of wheat, flour and bread can count the same value repeatedly because intermediate inputs are embodied in the final product.
62DIntermediate goods have economic value but are not counted separately alongside final goods in the final-goods approach.
63AValue added equals output value minus intermediate input costs; summing value added avoids double counting.
64DDouble counting overstates production rather than improving accuracy.
65ADisguised unemployment involves surplus workers, while underemployment involves labour that is not fully utilised.
66DUnderemployment can occur even when someone has a job; surplus labour can exist on farms.
67CIf five workers can maintain the output produced by eight, disguised unemployment may exist. Surplus workers do not necessarily reduce total output.
68DDisguised unemployment can occur in rural agriculture when too many people depend on limited work.
69CInfrastructure can create direct and indirect employment, but economic growth does not guarantee enough jobs for everyone.
70DGDP growth does not make employment generation unnecessary; small-scale industries can diversify rural jobs.
71CNon-farm jobs can absorb surplus labour, and moving surplus workers does not necessarily reduce farm output.
72DRural employment can come from manufacturing, tourism, transport and other services as well as agriculture.
73AThe original MGNREGA framework provided a 100-day guarantee of unskilled manual wage employment to eligible rural households demanding work, and the programme also supports livelihood security.
74DMGNREGA was not a guarantee of permanent government jobs; rural programmes can provide work when agricultural employment is limited.
75ARural employment programmes can provide seasonal income and support the creation or improvement of rural assets.
76DRural employment programmes can support village development through wage employment and useful community assets.

Part 2: Consolidated Tabular Answer Key

Q. No.AnswerQ. No.AnswerQ. No.AnswerQ. No.Answer
1A20C39D58D
2B21A40D59D
3C22D41C60C
4D23C42D61A
5A24D43D62D
6B25A44C63A
7C26D45A64D
8C27C46D65A
9A28D47C66D
10D29A48D67C
11C30D49A68D
12D31C50D69C
13A32D51C70D
14D33A52D71C
15C34D53A72D
16D35C54D73A
17A36D55C74D
18D37A56D75A
19D38D57A76D