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Question (1)

QN0038071

A farmer grows wheat using land, rainfall and other natural resources. The activity belongs to which sector?

(A) Secondary sector
(B) Tertiary sector
(C) Primary sector
(D) Organised sector

Correct Answer: C

Explanation:

Activities that directly use natural resources to produce natural goods belong to the primary sector.

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Question (2)

QN0038072

A factory converts iron ore into steel. Which classification best describes this activity?

(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) Public sector only

Correct Answer: B

Explanation:

The secondary sector converts natural products into manufactured goods through processing or manufacturing.

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Question (3)

QN0038073

A company transports vegetables from farms to a city market. Which sector is directly providing this activity?

(A) Primary
(B) Secondary
(C) Tertiary
(D) Agricultural

Correct Answer: C

Explanation:

Transport is a service activity and therefore belongs to the tertiary sector.

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Question (4)

QN0038074

Which sequence correctly represents the transformation of cotton from production to a final product?

(A) Cloth → cotton → transport
(B) Cotton → yarn/cloth → transport and trade
(C) Transport → cotton → cloth
(D) Cloth → transport → cotton

Correct Answer: B

Explanation:

Cotton is a primary product, cloth is manufactured in the secondary sector, and transport and trade are tertiary activities.

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Question (5)

QN0038075

A shopkeeper sells a manufactured refrigerator to a consumer. The shopkeeper's activity is classified as:

(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) Agricultural sector

Correct Answer: C

Explanation:

Trading and retailing provide services rather than manufacturing goods, so they belong to the tertiary sector.

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Question (6)

QN0038076

Which statement best explains why the three sectors of an economy are interdependent?

(A) Each sector works completely independently
(B) Products and services of one sector are often used by other sectors
(C) Only the tertiary sector depends on other sectors
(D) Only agriculture depends on industry

Correct Answer: B

Explanation:

Farmers need industrial inputs and services, industries need raw materials, and both require transport, banking, trade and communication.

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Question (7)

QN0038077

A farmer spends ₹30,000 on seeds, ₹20,000 on fertilisers and ₹10,000 on irrigation equipment. If the value of his crop is ₹90,000, what is the difference between crop value and these input expenses?

(A) ₹20,000
(B) is correct.
(C) ₹40,000
(D) ₹60,000

Correct Answer: C

Explanation:

Total input expenses = ₹30,000 + ₹20,000 + ₹10,000 = ₹60,000. Difference = ₹90,000 − ₹60,000 = ₹30,000. Therefore option (b) is correct.

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Question (8)

QN0038078

A farmer sells wheat to a mill for ₹30,000. The mill processes it into flour and sells the flour for ₹40,000. A biscuit company uses the flour to produce biscuits worth ₹75,000. If all three values are added directly, what problem would arise?

(A) Production would be underestimated
(B) Intermediate goods would be counted more than once
(C) Only tertiary production would be counted
(D) Final goods would be excluded

Correct Answer: B

Explanation:

Wheat and flour are intermediate goods whose values are already included in the value of the final biscuits. Adding all values causes double counting.

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Question (9)

QN0038079

A farmer sells wheat for ₹25,000 to a flour mill. The mill sells flour made from it for ₹35,000 to a biscuit company. The biscuits are sold for ₹80,000. What should be counted in GDP from this production chain?

(A) ₹25,000
(B) ₹35,000
(C) ₹60,000
(D) ₹80,000

Correct Answer: D

Explanation:

Only the value of the final good is counted to avoid double counting. Therefore ₹80,000 is counted.

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Question (10)

QN0038080

A farmer sells raw material for ₹20,000, a processor adds ₹15,000 of value, and a final producer adds ₹25,000 more. What is the total value of the final product?

(A) ₹25,000
(B) ₹40,000
(C) ₹45,000
(D) ₹60,000

Correct Answer: D

Explanation:

Final value = ₹20,000 + ₹15,000 + ₹25,000 = ₹60,000.

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Question (1)

A farmer grows wheat using land, rainfall and other natural resources. The activity belongs to which sector?

Explanation:

Link:

Question (2)

A factory converts iron ore into steel. Which classification best describes this activity?

Explanation:

Link:

Question (3)

A company transports vegetables from farms to a city market. Which sector is directly providing this activity?

Explanation:

Link:

Question (4)

Which sequence correctly represents the transformation of cotton from production to a final product?

Explanation:

Link:

Question (5)

A shopkeeper sells a manufactured refrigerator to a consumer. The shopkeeper's activity is classified as:

Explanation:

Link:

Question (6)

Which statement best explains why the three sectors of an economy are interdependent?

Explanation:

Link:

Question (7)

A farmer spends ₹30,000 on seeds, ₹20,000 on fertilisers and ₹10,000 on irrigation equipment. If the value of his crop is ₹90,000, what is the difference between crop value and these input expenses?

Explanation:

Link:

Question (8)

A farmer sells wheat to a mill for ₹30,000. The mill processes it into flour and sells the flour for ₹40,000. A biscuit company uses the flour to produce biscuits worth ₹75,000. If all three values are added directly, what problem would arise?

Explanation:

Link:

Question (9)

A farmer sells wheat for ₹25,000 to a flour mill. The mill sells flour made from it for ₹35,000 to a biscuit company. The biscuits are sold for ₹80,000. What should be counted in GDP from this production chain?

Explanation:

Link:

Question (10)

A farmer sells raw material for ₹20,000, a processor adds ₹15,000 of value, and a final producer adds ₹25,000 more. What is the total value of the final product?

Explanation:

Link:

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