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Class 10 Social Science MCQs: Sectors of Indian Economy (2025-26)

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Practice vital MCQs for Sectors of the Indian Economy to excel in Class 10 Social Science exams.

Understanding the economy of a country is an excellent topic to study. You will learn new terms related to the Indian economy and study its different sectors in Class 10 Social Science Chapter 2. This chapter explains the components of the Indian economy. To complete your preparation material for this chapter, download Sectors of the Indian Economy Class 10 MCQ. Solve these questions to check your preparation level and excel in the exams.


All the questions in this file have been framed by focusing on the important topics of this chapter. Before looking for the pros of solving MCQs, let us quickly examine the topics covered in this chapter.

Topics Covered in CBSE Class 10 Social Science Chapter 2 Sectors of the Indian Economy

The economy of India depends on many sectors. It has many components that together form a robust economic foundation for our country. Here is the list of components you need to focus on.


1. Introduction to Three Important Sectors of Economic Activities

  • Primary sector

  • Secondary sector

  • Tertiary sector


2. Comparing these Three Sectors

  • GDP by Primary, Secondary and Tertiary Sectors

  • Sectors where most people are employed

  • Creation of more employment


3. Organised and Unorganised Divisions of Sectors

  • Protection of workers in the unorganised sector


4. Private and Public Sectors in Terms of Ownership

5. Responsibilities of the Government

From the above list of topics, we can clearly understand how important these topics are to defining and understanding the Indian economy. By studying these topics, students will get a basic foundation of concepts ready to progress to a higher level of studying economics.


This foundation preparation is well-assisted by solving the Sectors of the Indian Economy MCQ with answers. These questions ask for specific answers. You can only give the correct answer if your concepts are clear.


MCQs for Class 10 Social Science Chapter 2 Sectors of the Indian Economy with Answers 

1. Which of the following is the largest employer in the primary sector?

A) Fishing

B) Forestry and logging

C) Agriculture

D) Mining


Answer: C) Agriculture


2. Which of the following is a major problem faced by farmers in India?

A) Lack of irrigation facilities

B) Too much rainfall

C) High soil fertility

D) Low demand for agricultural products


Answer: A) Lack of irrigation facilities


3. Which of the following is not an economic activity?

A) Working in a factory

B) Studying in a school

C) Running a shop

D) Transporting goods


Answer: B) Studying in a school


4. Which of the following sectors produces goods using natural resources?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector


Answer: A) Primary sector


5. Which of the following sectors contributes the most to the GDP of India?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector


Answer: C) Tertiary sector


6. Which of the following is a service provided by the tertiary sector?

A) Manufacturing goods

B) Mining natural resources

C) Providing education

D) Agriculture


Answer: C) Providing education


7. Which of the following is a characteristic of the secondary sector?

A) Production of goods using natural resources

B) Involvement of skilled labor

C) Direct contact with consumers

D) No value addition to raw materials


Answer: B) Involvement of skilled labor


8. Which of the following is a measure of the development of a country?

A) Literacy rate

B) Population growth rate

C) Climate

D) Availability of natural resources


Answer: A) Literacy rate


9. Which of the following is a form of unorganized sector?

A) Manufacturing units

B) Public sector enterprises

C) Private sector enterprises

D) Street vending


Answer: D) Street vending


10. Which of the following sectors has the highest employment potential?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector


Answer: C) Tertiary sector


11. Which of the following sectors is involved in the extraction of minerals and ores?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector


Answer: A) Primary sector


12. Which of the following is a problem faced by the organized sector in India?

A) Lack of job security

B) Lack of social security

C) Poor working conditions

D) Low wages


Answer: C) Poor working conditions


13. Which of the following sectors provides raw materials to the manufacturing sector?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector


Answer: A) Primary sector


14. Which of the following sectors is responsible for the distribution of goods and services?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector


Answer: C) Tertiary sector


15. Which of the following is a feature of the unorganized sector?

A) Regular employment

B) Formal contracts

C) Lack of job security

D) Social Security benefits


Answer: C) Lack of job security


Pros of Solving CBSE Class 10 Social Science Chapter 2 Sectors of the Indian Economy MCQs

Knowledge Depth

As mentioned earlier, the answers to this type of question are very specific. There are four options given in every question. One of the options is correct. It means your probability of choosing the correct answer is 25%. This is why MCQs are generally used in almost all forms of the board, competitive and entrance exams to check the depth of one’s knowledge. Only the best preparation can deliver the ideal output. By studying the topics neatly, you can easily identify the correct option from the rest and score more in this section.


MCQ Section in Class 10 Board Exam

The latest amendment of the CBSE Board explains the inclusion of an MCQ section in all subjects. It is done to check the previous factor mentioned here. Students will be able to score more if they have studied the chapters carefully. This is why the Vedantu experts have framed a set of MCQs for this chapter and the rest for you to practice.


Better Preparation

Studying a chapter is complete when you can answer all the questions properly. Answering all the MCQs is a daunting task but can be achieved easily. Let us consider an example here. After preparing the chapter properly, you will solve the MCQs. There will be a few questions you find difficult to answer.


These questions will depict the topics that need more attention. List the topics as these are the preparation gaps you identified by solving these MCQs. Revise the chapter and give more attention to these topics. You will find your preparation level has enhanced considerably.


Increase Accuracy and Confidence

Solving MCQs increases your accuracy and efficiency. Scoring good marks in this section is easy when you are confident and can find out the correct options easily. Hence, it needs proper preparation of an exam syllabus and practice. These MCQs will offer the right platform to practice solving crucial questions in this chapter. By doing so, you will automatically increase your confidence too.


Download CBSE Class 10 Social Science Chapter 2 Sectors of the Indian Economy MCQs

Study this chapter well and focus on making short notes for every topic. Make your concepts clear and resolve doubts as soon as possible. Complete preparing this chapter and then download the Sectors of the Indian Economy MCQ PDF for free to solve. Check your progress and add these advantages to your social science preparation. Stay ahead of the competition and learn to score more in the CBSE Class 10 Social Science exams.

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FAQs on Class 10 Social Science MCQs: Sectors of Indian Economy (2025-26)

1. What are the three main sectors of economic activity as per the CBSE Class 10 syllabus? List some important examples for each.

This is a fundamental and frequently asked question. For the board exams, you should define and provide examples for all three sectors clearly:

  • Primary Sector: This sector involves the direct exploitation of natural resources. It forms the base for all other products. Important examples include agriculture, dairy, fishing, forestry, and mining.

  • Secondary Sector: This sector transforms natural products into other forms through manufacturing. It is also called the industrial sector. Key examples are cotton fibre being processed into cloth, sugarcane into sugar, and iron ore into steel tools.

  • Tertiary Sector: This sector provides services rather than goods. It supports the primary and secondary sectors. Important examples include transportation, banking, communication, storage, trade, and teaching.

2. Explain the concept of 'disguised unemployment'. Why is this an important question for the Class 10 board exam?

Disguised unemployment is a high-probability question as it tests conceptual clarity. It is a situation where more people are employed in a job than are actually required. Even if some people are withdrawn from the activity, the total production does not fall. This type of underemployment is hidden. A classic example is from the agricultural sector, where a family of eight members may be working on a small farm plot that only requires four people to cultivate efficiently. The extra four people are disguisedly unemployed.

3. Why has the tertiary sector's share in India's GDP grown significantly, while its share in employment has not seen a similar rise?

This is a higher-order thinking (HOTS) question. The tertiary sector's share in GDP has risen due to several factors: the growing demand for services like healthcare and education, the development of IT and communication, and increased income levels. However, its employment share has not grown proportionally because:

  • Many service sector jobs, especially in the IT and financial sectors, are highly skilled and require specific education, which a large part of the labour force lacks.

  • In contrast, the primary sector (agriculture) continues to be the largest employer, absorbing most of the country's low-skilled and semi-skilled workforce, often leading to disguised unemployment.

4. What are the key differences between the organised and unorganised sectors? What types of questions on this topic can be expected in the exam?

Distinguishing between the organised and unorganised sectors is a very important topic. Expected questions may ask for a direct comparison or for an analysis of a worker's life in each. The key differences are:

  • Registration: The organised sector comprises enterprises registered with the government, whereas the unorganised sector consists of small, scattered units largely outside government control.

  • Job Security: Employment is secure in the organised sector with formal processes. In the unorganised sector, jobs are low-paid, irregular, and insecure.

  • Benefits: Organised sector employees get benefits like paid leave, provident fund, and medical insurance. Such benefits are absent in the unorganised sector.

5. How can the government create more and better employment opportunities in rural India, as per the 2025-26 CBSE syllabus focus?

This is a crucial application-based question. Beyond existing schemes like MGNREGA, the government can take several important steps to boost rural employment:

  • By promoting and locating industries and services in semi-rural areas, such as setting up agro-based industries like dal mills and cold storage facilities.

  • By investing in rural infrastructure like roads, transport, and communication, which can create construction jobs and facilitate economic activity.

  • By providing cheap agricultural credit and technical inputs to farmers to encourage multi-cropping and modern farming techniques.

  • By promoting rural tourism and regional craft industries to diversify income sources.

6. How is Gross Domestic Product (GDP) calculated? Explain the importance of using only the value of 'final goods and services'.

This is a core concept from the chapter. The Gross Domestic Product (GDP) of a country is the total value of all final goods and services produced within a country during a particular year. It is crucial to count only the value of final goods and services to avoid the problem of double counting. For example, if a farmer sells wheat for ₹10, a miller grinds it into flour for ₹15, and a baker sells bread for ₹25, the value of the final good (bread) is ₹25. This already includes the value of the intermediate goods (wheat and flour). Adding them all up (10+15+25) would incorrectly inflate the GDP.

7. What are the key features and objectives of the Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA)?

MGNREGA 2005 is a landmark law and an important topic for 3-mark questions. Its key objectives and features are:

  • It guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

  • It aims to secure the 'right to work' as a fundamental right.

  • If the government fails to provide employment within 15 days, it must pay an unemployment allowance to the person.

  • One-third of the proposed jobs are reserved for women.

8. Compare the role of the public sector versus the private sector in India's economic development. Why is a strong public sector still considered important?

This is a critical analysis question. The private sector is driven by the motive of profit, focusing on consumer goods and services where returns are high. The public sector (owned by the government) is driven by the motive of social welfare. A strong public sector is still vital for a developing country because it undertakes large-scale, essential projects that the private sector may not find profitable, such as:

  • Building infrastructure like roads, railways, and dams.

  • Providing essential services like healthcare and education at reasonable rates.

  • Supporting key industries and ensuring balanced regional development.

9. What are some of the most important Multiple Choice Questions (MCQs) that are frequently asked from the 'Sectors of Indian Economy' chapter?

For the objective section of the Class 10 Social Science exam, some important MCQs from this chapter include:

  • Q. Which sector is also known as the service sector? Answer: Tertiary Sector.

  • Q. GDP is the total value of _____ produced during a particular year. Answer: All final goods and services.

  • Q. Which of the following is an example of an organised sector activity? (Options might include a daily wage labourer, a farmer, a street vendor, and a teacher in a government school). Answer: A teacher in a government school.

  • Q. Under MGNREGA 2005, the number of guaranteed days of employment per year is ____. Answer: 100 days.