UPSC CSE Prelims
Factors of Production Previous Year Questions (PYQs)
Practice solved questions for Factors of Production with detailed step-by-step solutions, key insights, and trend analysis for UPSC CSE PRELIMS.
Solved Previous Year Questions
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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?
Detailed Explanation:
Answer: Option 2 — Only two
This question tests the understanding of the classification of economic activities into primary, secondary, and tertiary sectors. Out of the four pairs given, only two are correctly matched (Dairy farm - Primary and Weaving cloth - Secondary).
❌ Pair 1 – Incorrect: Storage of agricultural produce is a tertiary activity (service sector), not secondary. It involves preservation and warehousing services.
✅ Pair 2 – Correct: Dairy farm is a primary activity as it involves direct extraction of natural resources (milk from animals).
❌ Pair 3 – Incorrect: Mineral exploration is a primary activity, not tertiary. It involves extraction of raw materials from the earth.
✅ Pair 4 – Correct: Weaving cloth is a secondary activity as it involves manufacturing and transforming raw materials (cotton, silk) into finished products.
📝 Short Notes: Classification of Economic Sectors
| Sector | Definition | Examples |
|---|---|---|
| Primary Sector | Extraction and production of raw materials from natural resources | Agriculture, dairy farming, fishing, forestry, mining, quarrying, mineral exploration |
| Secondary Sector | Manufacturing and processing of raw materials into finished or semi-finished goods | Weaving cloth, making sugar from sugarcane, steel production, construction, food processing |
| Tertiary Sector | Services that support primary and secondary sectors; no goods production | Storage, transportation, banking, insurance, trade, education, healthcare, tourism |
- Key Distinction: Storage and warehousing are always tertiary activities as they provide services rather than extract or manufacture goods.
- Processing vs. Extraction: Mining and exploration are primary (extraction), while refining minerals is secondary (processing).
- India's Economic Structure: Historically agriculture-dominated (primary), now services (tertiary) contribute the most to GDP.
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