Structure of the Indian Economy & Demographics (Part-II)

Total Questions: 62

61. With reference to the sectors of the Indian economy, consider the following pairs: [2024-1]

Economic activity Sector
1. Storage of agricultural produceSecondary
2. Dairy farmPrimary
3. Mineral explorationTertiary
4. Weaving clothSecondary
Correct Answer: (b) Only two
Solution:Storage of agricultural produce is a service activity and belongs to the tertiary sector, not the secondary sector, which processes raw materials. Dairy farming correctly falls under the primary sector, as it involves the production of raw materials (milk).

Mineral exploration is part of the primary sector, not the tertiary sector, as it involves finding mineral deposits. Weaving cloth is correctly categorized in the secondary sector, which deals with processing raw materials into finished goods, such as converting cotton or wool into fabric.

Hence the correct answer is (b).

62. With reference to physical capital in Indian economy, consider the following pairs: [2024-1]

Items Category
1. Farmer's ploughWorking capital
2. ComputerFixed capital
3. Yarn used by the weaverFixed capital
4. PetrolWorking capital
Correct Answer: (b) Only two
Solution:A plough, as a durable item used over many production cycles, is classified as fixed capital, similar to a computer, which is used for several years in production. In contrast, working capital includes resources consumed in day-to-day operations, such as raw materials, wages, and operational expenses.

For example, yarn used by a weaver and petrol used in production are considered working capital, as they are consumed quickly and need regular replenishment. Hence the correct answer is (b).