CHAPTER-2 Sectors of the Indian Economy SECTORS OF ECONOMIC ACTIVITIES VERY SHORT ANSWERS:- 1. Give one example of major economic activity. Ans. Primary sector economic activity such as cultivation of wheat. 2. What is meant by the ‘Primary Sector’? Ans. When we produce a good by exploiting natural resources, it is an activity of the primary sector e.g., the cultivation of cotton. 3. On what basis sectors are classified into primary, secondary and tertiary sectors? Ans. The nature of economic activity. 4. State any two activities which do not come under the primary sector. Ans. Banking and insurance. 5. Why is the tertiary sector also called service sector? Ans. Since tertiary sector activities generate services rather than goods, the tertiary sector is also called the service sector. 6. What is meant by economic activity? Ans. The activities that result in the production of goods and services and add value to the national income are called economic activities. 7. Which sector helps