Which sector of the economy is also known as the service sector?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Public sector
Correct answer
Explanation
The correct answer is C, the tertiary sector. 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.
Option A, the primary sector, is also called the agriculture and allied sector, and option B, the secondary sector, is also called the industrial sector, so all three have a second name and papers exploit the confusion. Option D, the public sector, belongs to an entirely different classification, the one based on ownership rather than on the nature of the activity; a public sector enterprise may be in any of the three sectors, as a government owned coal mine, steel plant or bank shows. Keeping the three classifications apart is the main skill this chapter tests.
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 →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every member of the household may work on the land even though the work needs far fewer hands; if some of them were withdrawn, total output would not fall.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
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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.
Read the full explanation →Banking and insurance are activities of which sector?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Unorganised sector
Show answer
Banking and insurance create no physical product; they support production and trade by providing credit, moving money and covering risk, and such support activities are the core of the tertiary or service sector.
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