Static Quiz 03 March 2026 (Economy)

Q1.Consider the following statements:

  1. Every activity in the quaternary sector is necessarily a part of the tertiary sector.
  2. The quinary sector is distinguished from the tertiary sector primarily on the basis of hierarchy of decision-making.
  3. Electricity generation is classified under the secondary sector because it involves transformation of inputs.

Which of the statements given above is/are correct?

A) 1 and 2 only
B) 2 and 3 only
C) 3 only
D) 1, 2 and 3

Q1. (B)

Explanation:

  • Statement 1 – Incorrect.
    Although some frameworks treat quaternary as a subset of services, in advanced sectoral classification it is analytically separated due to its knowledge-creation focus (R&D, innovation). Hence, it is not necessarily part of general tertiary services.
  • Statement 2 – Correct.
    Quinary sector is distinguished by strategic decision-making and specialised leadership roles (policy, judiciary, corporate boards), not merely service provision.
  • Statement 3 – Correct.
    Electricity generation involves conversion of primary energy into usable power, hence classified under secondary (value addition through transformation).

Q2.  

Assertion (A): Disguised unemployment is structurally associated with the primary sector in developing economies.

Reason (R): Marginal productivity of additional labour in agriculture may approach zero.

A) Both A and R are correct and R is the correct explanation of A
B) Both A and R are correct but R is not the correct explanation
C) A is correct but R is incorrect
D) A is incorrect but R is correct

Q2. (A)

Explanation:

  • In traditional agriculture, surplus labour does not increase output proportionately.
  • When marginal productivity ≈ 0, removal of some workers does not reduce output → classic case of disguised unemployment.
  • Hence, Reason correctly explains the Assertion.

Q3. Match List I with List II:

List IList II
A. Data analytics firm1. Secondary
B. Steel manufacturing2. Quaternary
C. Supreme Court3. Primary
D. Iron ore extraction4. Quinary

Select the correct answer:

A) A-2, B-1, C-4, D-3
B) A-1, B-2, C-4, D-3
C) A-2, B-3, C-4, D-1
D) A-4, B-1, C-2, D-3

Q3. (A)

Explanation:

  • Data analytics → Quaternary (knowledge-based activity).
  • Steel manufacturing → Secondary (value addition).
  • Supreme Court → Quinary (highest-level decision-making).
  • Iron ore extraction → Primary (resource extraction).

Q4.A biotechnology company develops patented seeds using advanced genetic research. The activity primarily belongs to:

A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector

Q4. (D)

Explanation:

  • Core activity = knowledge creation + innovation + scientific R&D.
  • Even though output supports agriculture, classification depends on nature of activity, not end use.
  • Hence, Quaternary sector.

Q5.Consider the following activities:

  1. Cloud computing infrastructure services
  2. Construction of metro rail
  3. Artificial intelligence algorithm design
  4. Wholesale grain trade

How many of the above belong to the tertiary sector?

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

Q5. (B)

Explanation:

  • 1 → Tertiary (service provision).
  • 2 → Secondary (construction = value addition).
  • 3 → Quaternary (knowledge/innovation).
  • 4 → Tertiary (commercial service).

Thus, 1 and 4 → Two.


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