Class 9 The Indian Economy: A Study Mock Test (ICSE)

Topics in The Indian Economy: A Study

• Features of the Indian economy
• Sectors: primary, secondary and tertiary
• Role of agriculture
• Role of industry and services
• Infrastructure

The Indian Economy: A Study practice questions with answers

1. Q1Multiple choice·1 mark
   Which of the following best describes the contribution of the service sector (tertiary sector) to the modern Indian economy?

   1. (a)It employs the largest share of India's workforce, ahead of agriculture.
   2. (b)It ranks second to industry in its share of India's GDP at present.
   3. (c)Its share of India's GDP has fallen steadily since the 1991 reforms.
   4. (d)It has the largest share of India's GDP and leads its recent growth.
   Show answer and step marks

   1. Correct option: (d) It has the largest share of India's GDP and leads its recent growth.+1

   Answer: (d)
2. Q2Multiple choice·1 mark
   Which of the following is categorized as economic infrastructure rather than social infrastructure?

   1. (a)Power generation and transport networks
   2. (b)Educational institutions and schools
   3. (c)Hospitals and primary healthcare centers
   4. (d)Public housing and community welfare schemes
   Show answer and step marks

   1. Correct option: (a)+1

   Answer: (a)
3. Q3Short answer·2 marks
   State two significant ways in which the agricultural sector contributes to the economic development of India.
   Show answer and step marks

   1. First contribution, any one of: provides food grains and ensures food security; provides employment and livelihood to a large share of the workforce; supplies raw materials such as cotton, jute and sugarcane to agro-based industries; contributes to national income; earns foreign exchange through exports such as tea, spices and rice; provides a market for industrial goods such as fertilisers and tractors; or any other valid contribution.+1
   2. Second contribution, a different one from the same list.+1

   Answer: Any two of: food security; employment for a large share of the workforce; raw materials for agro-based industries; contribution to national income; export earnings; a market for industrial goods.
4. Q4Short answer·2 marks
   State any two major reasons why agriculture is considered the backbone of the Indian economy.
   Show answer and step marks

   1. First reason, any one of: it employs a large share of the workforce (about 46%); it ensures food security by producing food grains; it supplies raw materials to agro-based industries; it contributes to national income; it earns foreign exchange through exports; it provides a market for industrial goods; or any other valid reason.+1
   2. Second reason, a different one from the same list.+1

   Answer: Any two of: it employs a large share (about 46%) of the workforce; it ensures food security; it supplies raw materials to agro-based industries; it contributes to national income; it earns foreign exchange; it provides a market for industrial goods.
5. Q5Long answer·4 marks
   Discuss any four distinct roles played by the secondary (industrial) and tertiary (service) sectors in accelerating the economic development of India.
   Show answer and step marks

   1. First role, any one of: raising GDP and shifting the economy away from dependence on agriculture to higher-value industry and services; generating employment that absorbs surplus and disguisedly unemployed farm labour; supplying inputs and services (machinery, fertilisers, transport, banking) that modernise agriculture; building capital and infrastructure; earning foreign exchange through exports of manufactured goods and IT services; raising living standards by providing more goods and services; promoting urbanisation and regional development; or any other valid role, briefly explained.+1
   2. Second role, a different one from the same list.+1
   3. Third role, a different one from the same list.+1
   4. Fourth role, a different one from the same list.+1

   Answer: Any four of: raising GDP and structural change away from agriculture; employment for surplus farm labour; inputs and services that modernise agriculture; capital formation and infrastructure; foreign exchange from exports of goods and IT services; higher living standards; urbanisation and regional development.
6. Q6Long answer·4 marks
   The secondary and tertiary sectors are vital pillars of modern economic growth in India. (a) State two distinct contributions of the industrial sector to the economic development of India. [2] (b) Explain two key factors responsible for the rapid growth of the service sector in the Indian economy. [2]
   Show answer and step marks

   1. (a) First contribution of industry, any one of: generates employment and reduces pressure on agriculture; adds value to raw materials and raises national income; supplies machinery, fertilisers and other inputs that modernise agriculture; earns foreign exchange through exports; builds infrastructure and speeds up urbanisation; or any other valid contribution.+1
   2. (a) Second contribution, a different one from the same list.+1
   3. (b) First factor, any one of: rapid expansion of IT and IT-enabled services meeting global outsourcing demand; rising incomes increasing demand for banking, insurance, health, education and tourism; liberalisation after 1991 and foreign investment in services; growth of telecommunications and the internet; urbanisation creating demand for transport, trade and other services; or any other valid factor.+1
   4. (b) Second factor, a different one from the same list.+1

   Answer: (a) Any two of: employment and reduced pressure on agriculture; value addition and higher national income; inputs for agriculture; export earnings; infrastructure and urbanisation. (b) Any two of: growth of IT and IT-enabled services; rising incomes raising demand for banking, insurance, health and education; liberalisation and FDI in services; telecom and internet growth; urbanisation.

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