With reference to the "Service Sector", consider the following statements: 1. It includes activities that help in the development of primary and secondary sectors. 2. It excludes essential services like teachers and doctors. 3. In recent times, services based on information technology have become important. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation The economy is structurally divided into three sectors based on the nature of activities: Primary, Secondary, and Tertiary. The Tertiary Sector, commonly referred to as the Service Sector, involves activities that generate services rather than tangible goods. Statement-wise Analysis: - Statement 1 is Correct: The core function of the service sector is to support the primary and secondary sectors. Activities such as transport, trade, storage, banking, and communication do not produce goods themselves but are essential for the movement, financing, and distribution of products generated in the agricultural and industrial sectors. - Statement 2 is Incorrect: The service sector is not limited to production-support activities. It encompasses a wide range of essential services provided by professionals and workers who do not directly assist in the production of goods. This includes doctors, teachers, lawyers, barbers, and administrative personnel. - Statement 3 is Correct: In the modern economic landscape, the definition of services has expanded to include technology-driven sectors. Services based on Information and Communication Technology (ICT), such as software development, internet cafes, ATM booths, and call centers, have become significant contributors to the sector's growth. Key Takeaway: The Service Sector includes both production-support services (transport, banking) and personal or professional services (healthcare, education), distinguishing it from the goods-producing sectors by the intangible nature of its output.

NCERT Class 10 Economics — Chapter 2: Sectors of the Indian Economy

mcqeasy

With reference to the "Service Sector", consider the following statements:

It includes activities that help in the development of primary and secondary sectors.
It excludes essential services like teachers and doctors.
In recent times, services based on information technology have become important.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1, 2 and 3
B1 and 3 only
C1 and 2 only
D2 only

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

The economy is structurally divided into three sectors based on the nature of activities: Primary, Secondary, and Tertiary. The Tertiary Sector, commonly referred to as the Service Sector, involves activities that generate services rather than tangible goods.

Statement-wise Analysis:

Statement 1 is Correct: The core function of the service sector is to support the primary and secondary sectors. Activities such as transport, trade, storage, banking, and communication do not produce goods themselves but are essential for the movement, financing, and distribution of products generated in the agricultural and industrial sectors.
Statement 2 is Incorrect: The service sector is not limited to production-support activities. It encompasses a wide range of essential services provided by professionals and workers who do not directly assist in the production of goods. This includes doctors, teachers, lawyers, barbers, and administrative personnel.
Statement 3 is Correct: In the modern economic landscape, the definition of services has expanded to include technology-driven sectors. Services based on Information and Communication Technology (ICT), such as software development, internet cafes, ATM booths, and call centers, have become significant contributors to the sector's growth.

Key Takeaway:

The Service Sector includes both production-support services (transport, banking) and personal or professional services (healthcare, education), distinguishing it from the goods-producing sectors by the intangible nature of its output.

Your note

More from Chapter 2: Sectors of the Indian Economy

Consider the following statements regarding the "Service Sector" growth: 1. New services based on information and communication technology have become important. 2. The entire service sector is growing rapidly, providing high incomes to all workers. 3. All workers in the service sector earn high incomes and enjoy job security. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the "GDP" of India: 1. It shows how big the economy is. 2. It is the sum of the value of intermediate goods produced in the three sectors. 3. It excludes the value of goods and services produced by Indians outside the country. Which of the statements given above is/are correct?

medium

Consider the following statements regarding "Disguised Unemployment": 1. It happens when people are visibly unemployed. 2. It is common in the agricultural sector. 3. Removing a few workers from the sector does not affect total production. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the "Unorganised Sector" workers in urban areas: 1. Workers in small-scale industry are always covered under the organised sector. 2. They include casual workers in construction, trade, and transport. 3. Street vendors are considered part of the formal service sector. Which of the statements given above is/are correct?

easy

Consider the following statements regarding the "Primary Sector": 1. It forms the base for all other products. 2. It is unrelated to agriculture and allied activities. 3. It includes activities like mining and forestry. Which of the statements given above is/are correct?

easy

Keep practising Chapter 2: Sectors of the Indian Economy

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The correct option is 1 and 3 only.

Explanation

Statement-wise Analysis:

Statement 1 is Correct: The core function of the service sector is to support the primary and secondary sectors. Activities such as transport, trade, storage, banking, and communication do not produce goods themselves but are essential for the movement, financing, and distribution of products generated in the agricultural and industrial sectors.
Statement 2 is Incorrect: The service sector is not limited to production-support activities. It encompasses a wide range of essential services provided by professionals and workers who do not directly assist in the production of goods. This includes doctors, teachers, lawyers, barbers, and administrative personnel.
Statement 3 is Correct: In the modern economic landscape, the definition of services has expanded to include technology-driven sectors. Services based on Information and Communication Technology (ICT), such as software development, internet cafes, ATM booths, and call centers, have become significant contributors to the sector's growth.

Key Takeaway: