The division of the economy into organised and unorganised sectors is based on what?
- A.Ownership of assets
- B.Conditions and terms of employment
- C.The nature of the economic activity
- D.The volume of exports
Correct answer
Explanation
The correct answer is B, the conditions and terms of employment. An enterprise belongs to the organised sector when it is registered with the government and follows labour laws, so that employment is regular and secure and workers get fixed hours, paid leave, provident fund and medical benefits. Where none of this holds, the unit is in the unorganised sector.
Option A, ownership of assets, is the basis of the public and private classification. Option C, the nature of the activity, is the basis of the primary, secondary and tertiary classification. Option D has no place in any of these. The whole chapter turns on keeping the three bases apart, because an activity can be described under all three at once: a government owned steel plant is secondary by activity, organised by employment conditions and public by ownership.
Read the full article: Sectors of the Indian Economy: Primary to Tertiary
Practice Questions
View allMining is classified under which sector of the economy?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Quaternary sector
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Mining takes a product straight out of nature without changing its form, exactly as farming, fishing and forestry do, and every activity of that kind is placed in the primary sector.
Read the full explanation →Which sector of the economy is also known as the service sector?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Public sector
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It produces no goods at all; it provides services such as transport, storage, communication, trade, banking, insurance, education, health care and administration, which is why it is commonly called the service sector.
Read the full explanation →Disguised unemployment is most commonly found in which sector in India?
- A.Agriculture
- B.Information technology
- C.Banking
- D.Mining
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On a small family holding every member of the household may work on the land even though the work needs far fewer hands; if some of them were withdrawn, total output would not fall.
Read the full explanation →How many days of wage employment in a financial year does MGNREGA guarantee to a rural household?
- A.50 days
- B.100 days
- C.150 days
- D.200 days
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The Mahatma Gandhi National Rural Employment Guarantee Act, passed in 2005, guarantees one hundred days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
Read the full explanation →Which sector employs the largest share of India's workforce?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Quaternary sector
Show answer
Agriculture and its allied activities still give work to the largest number of Indians, even though the sector's contribution to national income is far smaller than that share of employment would suggest.
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