Economy
2024
Basic Economic Terms

With reference to the sectors of the Indian economy, consider the following pairs: Economic activity Sector

  1. Storage of agricultural produce Secondary
  2. Dairy farm Primary
  3. Mineral exploration Tertiary
  4. Weaving cloth Secondary How many of the pairs given above are correctly matched?

D.All four
C.Only three
A.Only one
B.Only two

Correct Answer: Option C

The Indian economy is broadly divided into primary, secondary, and tertiary sectors.

  • Primary Sector: Involves activities that directly utilize natural resources, such as farming, mining, fishing, and dairy farming. These activities are typically concentrated in rural areas. Pair 2 (Dairy farm - Primary) is correctly matched.

  • Secondary Sector: Encompasses activities where natural products are transformed into other forms through manufacturing processes, like bicycle production, weaving, and spinning. These activities are often located in factories or mills. Pair 4 (Weaving cloth - Secondary) is correctly matched.

  • Tertiary Sector: Focuses on providing services, including banking, transport, shops, insurance, and government departments. These services support the development of the primary and secondary sectors and include activities like transport, storage, communication, and trade.

    • Pair 1 (Storage of agricultural produce - Secondary) is not correctly matched. Storage is a service and falls under the Tertiary Sector.
    • Pair 3 (Mineral exploration - Tertiary) is correctly matched. While activities involving Research & Development, specialists, and consulting are a part of the Quaternary and Quinary sectors, mineral exploration has historically been covered under the Tertiary Sector in the context of the three major sectors of the Indian Economy.

Therefore, pairs 2, 3, and 4 are correctly matched.

Hence, only three pairs are correctly matched.