Economy : Basic Economic Concepts

Q 1 / 14

UPSC CSE Prelims 2024

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 ?

EXPLANATION

The correct option is Only two pairs.

Explanation

Economic activities are broadly classified into primary, secondary, and tertiary sectors based on the nature of work performed.

  • Storage of agricultural produce – Secondary: Incorrect.
    Storage of agricultural produce is a service related to distribution and logistics. Such activities fall under the tertiary (service) sector, not the secondary sector.
  • Dairy farm – Primary: Correct.
    Dairy farming involves rearing animals and producing milk, which is a direct extraction of natural resources. Hence, it belongs to the primary sector.
  • Mineral exploration – Tertiary: Incorrect.
    Mineral exploration is related to locating and extracting natural resources from the earth, which is part of the primary sector, not the tertiary sector.
  • Weaving cloth – Secondary: Correct.
    Weaving cloth involves processing raw materials such as cotton or silk into finished products. Such manufacturing activities belong to the secondary sector.

Key Takeaway: Primary sector involves extraction of natural resources, secondary sector includes manufacturing activities, and tertiary sector provides services such as storage and transport.

SOURCENCERT Class 11 Indian Economic Development, Chapter 2: Indian Economy 1950-1990