22 multiple-choice (MCQ / objective) questions from this chapter, in every exam-style shape used in the paper. Every question comes with an explanation along with the answer, so you remember why the option is correct, not just which one it is.
1 Direct Questions
Direct Questions
- 1 markAccording to the chapter, the main difference between secondary and tertiary activities is that tertiary activities rely more on:
(A) Specialised skills, experience and knowledge of workers(B) Production techniques and machinery(C) Factory processes(D) Availability of raw materials - 1 markRural marketing centres are described in the chapter as:
(A) Highly specialised urban service centres(B) Quasi-urban centres serving nearby settlements(C) International trading hubs(D) Purely agricultural collection points with no retailing - 1 markPeriodic markets are organised at different temporal intervals mainly because:
(A) the government mandates fixed market days(B) all shopkeepers rotate their shops(C) periodic markets always relocate permanently(D) there are no regular markets in the area - 1 markWhich of the following is described in the chapter as a feature of chain stores?
(A) They sell only imported goods(B) They operate a single outlet only(C) They never employ specialists(D) They are able to purchase merchandise most economically, sometimes directing goods to be manufactured to their specification - 1 markIn wholesale trading, a retail store that lacks its own capital typically depends on:
(A) government subsidies(B) the wholesaler’s capital, through credit extended by wholesalers(C) consumer cooperative funds(D) the manufacturer’s advertising budget - 1 markWhich of the following is NOT one of the three ways of measuring transport distance given in the chapter?
(A) Km distance(B) Time distance(C) Population distance(D) Cost distance - 1 markA ‘node’ in a transport network is best described in the chapter as:
(A) the meeting point of two or more routes, or a point of origin/destination(B) a place with no roads(C) a type of vehicle(D) a boundary line between two countries - 1 markAccording to the chapter, demand for transport is chiefly influenced by:
(A) the price of fuel(B) the number of local festivals(C) the number of political parties(D) the size of population
2 Assertion-Reason
Assertion-Reason
- 1 markAssertion (A): Tertiary activities are related to the service sector.
Reason (R): Manpower is an important component of the service sector, as most tertiary activities are performed by skilled labour, professionally trained experts and consultants.
(A) Both A and R are true, and R correctly explains A(B) Both A and R are true, but R does not correctly explain A(C) A is true, but R is false(D) A is false, but R is true - 1 markAssertion (A): Telecommunications have revolutionised communication because of the speed with which messages are sent.
Reason (R): The time needed to send a message has been reduced from weeks to minutes.
(A) Both A and R are true, and R correctly explains A(B) Both A and R are true, but R does not correctly explain A(C) A is true, but R is false(D) A is false, but R is true
3 Match the Following
Match the Following
- 1 markMatch List I with List II and select the correct combination:
List I: 1) Consumer cooperatives 2) Departmental stores 3) Chain stores 4) Rural marketing centres
List II: (i) Purchase merchandise most economically, sometimes directing goods to be manufactured to specification (ii) First large-scale innovation in retailing (iii) Quasi-urban centres serving nearby settlements (iv) Delegate purchasing/sales authority to departmental heads
(A) 1-i, 2-ii, 3-iii, 4-iv(B) 1-ii, 2-iv, 3-i, 4-iii(C) 1-iii, 2-i, 3-iv, 4-ii(D) 1-iv, 2-iii, 3-ii, 4-i - 1 markMatch List I with List II and select the correct combination:
List I: 1) Climate 2) Landscape 3) History and Art 4) Culture and Economy
List II: (i) ancient towns, archaeological sites, castles and palaces (ii) warm sunny weather for beach holidays (iii) mountains, lakes and unaltered scenery (iv) ethnic and local customs, cheap-cost destinations
(A) 1-ii, 2-iii, 3-i, 4-iv(B) 1-i, 2-iv, 3-ii, 4-iii(C) 1-iii, 2-i, 3-iv, 4-ii(D) 1-iv, 2-ii, 3-iii, 4-i
4 Statement-Based Questions
Statement-Based Questions
- 1 markConsider the following statements about services regulated by governments or companies:
(i) Governments or companies often supervise highways, bridges and fire-fighting departments.
(ii) State and union legislation have established corporations to control transport, telecommunication, energy and water-supply services.
Which of the statements given above is/are correct?
(A) Only (i)(B) Only (ii)(C) Both (i) and (ii)(D) Neither (i) nor (ii) - 1 markConsider the following statements about medical tourism:
(i) India has emerged as the leading country of medical tourism in the world.
(ii) About 55,000 patients from the U.S.A. visited India for treatment in 2005.
Which of the statements given above is/are correct?
(A) Only (i)(B) Only (ii)(C) Both (i) and (ii)(D) Neither (i) nor (ii)
5 Arrange in the Correct Order
Arrange in the Correct Order
- 1 markArrange the following stages in the development of communication in the sequence given in the chapter:
A. Mobile telephony and satellites made communications independent of transport
B. The invention of writing preserved messages
C. Messages were carried by hand, animals, boat, road, rail and air, so communication depended on the means of transport
Select the correct sequence.
(A) C, A, B(B) A, C, B(C) B, C, A(D) C, B, A - 1 markArrange the following parts of the service sector from general services to the highest level of decision making, as the chapter describes them:
A. Quinary activities: the highest level of decision makers or policy makers
B. Tertiary activities: trade, transport, communication and services
C. Quaternary activities: collection, production and dissemination of information; research and development
Select the correct sequence.
(A) A, C, B(B) C, B, A(C) A, B, C(D) B, C, A
6 Fill in the Blanks
Fill in the Blanks
- 1 markRetail trading that takes place without a fixed store, such as street peddling, handcarts, mail-order and vending machines, is called _____ retail trading.
(A) wholesale(B) non-store(C) periodic(D) chain - 1 markTourism has become the world’s single largest tertiary activity, employing about _____ million people in registered jobs.
(A) 100(B) 150(C) 250(D) 400
7 Odd One Out
Odd One Out
- 1 markWhich one of the following is the odd one out?
(A) Tertiary activities(B) Quaternary activities(C) Quinary activities(D) Primary activities
8 Passage-Based Questions
Passage-Based Questions
Passage
Read the following extract and answer the questions that follow: ‘Outsourcing or contracting out is giving work to an outside agency to improve efficiency and to reduce costs. When outsourcing involves transferring work to overseas locations, it is described by the term off-shoring. Data processing is an IT related service that can easily be carried out in Asian, East European and African countries, where IT skilled staff with good English language skills are available at lower wages than those in the developed countries. Outsourcing countries are facing resistance from job-seeking youths in their respective countries, and the comparative advantage is the main reason for continuing outsourcing.’
- 1 markAccording to the passage, why can data processing easily be carried out in Asian, East European and African countries?
(A) Because labour laws are weaker there(B) Because IT-skilled staff with good English-language skills are available at lower wages than in developed countries(C) Because these countries have no data protection rules(D) Because these countries have larger populations
Passage
Read the following extract and answer the questions that follow: ‘Tourism is travel undertaken for purposes of recreation rather than business. It has become the world’s single largest tertiary activity in total registered jobs (250 million) and total revenue (40 per cent of the total GDP). Besides, many local persons are employed to provide services like accommodation, meals, transport, entertainment and special shops serving the tourists. In some regions, tourism is seasonal because the vacation period is dependent on favourable weather conditions, but many regions attract visitors all the year round.’
- 1 markAccording to the passage, tourism is travel undertaken mainly for the purpose of:
(A) business(B) recreation(C) medical treatment(D) education
9 True / False
True / False
- 1 markStatement I: The chapter states that low-order services such as grocery shops and laundries are more common and widespread than high-order services.
Statement II: The chapter states that specialised services like those of accountants, consultants and physicians are examples of low-order services.
Which one of the following is correct?
(A) Both Statement I and Statement II are true(B) Statement I is true but Statement II is false(C) Statement I is false but Statement II is true(D) Both Statement I and Statement II are false
Answer Key and Explanations
Direct Questions
- (A) The chapter states that tertiary activities rely ‘more heavily on specialised skills, experience and knowledge of the workers rather than on the production techniques, machinery and factory processes’ used in secondary activities.
- (B) The chapter states: ‘Rural marketing centres cater to nearby settlements. These are quasi-urban centres.’
- (D) The chapter states: ‘Periodic markets in rural areas are found where there are no regular markets and local periodic markets are organised at different temporal intervals.’
- (D) The chapter’s ‘More on Stores’ box states that chain stores ‘are able to purchase merchandise most economically, often going so far as to direct the goods to be manufactured to their specification.’
- (B) The chapter states that ‘the retailer operates very largely on the wholesaler’s capital,’ since wholesalers often extend credit to retail stores.
- (C) The chapter gives only three ways of measuring transport distance: km distance, time distance and cost distance; population distance is not one of them.
- (A) The chapter defines a node as ‘the meeting point of two or more routes, a point of origin, a point of destination or any sizeable town along a route.’
- (D) The chapter states: ‘Demand for transport is influenced by the size of population. The larger the population size, the greater is the demand for transport.’
Assertion-Reason
- (B) Both statements are true and both come from the chapter’s opening paragraph, but the Reason does not explain the Assertion: that manpower is an important component of the service sector describes who performs tertiary activities, not why tertiary activities are related to the service sector.
- (A) Both statements are true, and the Reason correctly explains the Assertion: the chapter gives the drop from weeks to minutes as exactly why telecommunications revolutionised communication.
Match the Following
- (B) The chapter’s own descriptions match this combination: consumer cooperatives were the first large-scale innovation in retailing; departmental stores delegate purchasing and sales authority to departmental heads; chain stores purchase merchandise most economically, sometimes directing goods to be manufactured to their specification; and rural marketing centres are quasi-urban centres serving nearby settlements.
- (A) The chapter lists these tourist-attraction factors: climate explains the appeal of warm, sunny beach holidays; landscape covers mountains, lakes and unaltered scenery; history and art draw visitors to ancient towns, archaeological sites, castles and palaces; and culture and economy draw tourists interested in ethnic and local customs and cheap-cost destinations.
Statement-Based Questions
- (C) Both statements are true and are drawn directly from the chapter: it names highways, bridges and fire-fighting as government/company-supervised services, and separately states that state and union legislation have established corporations to control transport, telecommunication, energy and water-supply services.
- (C) Both statements are true and are stated directly in the chapter: India has emerged as the leading country of medical tourism in the world, and about 55,000 patients from the U.S.A. visited India for treatment in 2005.
Arrange in the Correct Order
- (C) The chapter says the invention of writing preserved messages and made communication dependent on means of transport; the messages were actually carried by hand, animals, boat, road, rail and air; later, developments such as mobile telephony and satellites made communications independent of transport. So the sequence is B, C, A.
- (D) Tertiary activities (trade, transport, communication and services) are the general services; quaternary activities are described as an advanced form of services involving specialised knowledge; and quinary activities are performed by the highest level of decision makers or policy makers. So the sequence is B, C, A.
Fill in the Blanks
- (B) The chapter names street peddling, handcarts, trucks, door-to-door selling, mail-order, telephone selling, automatic vending machines and the internet as examples of non-store retail trading.
- (C) The chapter states that tourism has become the world’s single largest tertiary activity in total registered jobs (250 million) and total revenue (40 per cent of the total GDP).
Odd One Out
- (D) Tertiary, quaternary and quinary activities are all described in the chapter as parts or advanced subdivisions of the service (tertiary) sector; primary activities, which involve extracting resources directly from nature, belong to a completely different sector, making them the odd one out.
Passage-Based Questions
- (B) The passage states that IT-skilled staff with good English-language skills are available at lower wages than in developed countries, which is why data processing can be carried out in Asian, East European and African countries.
- (B) The passage opens by stating that tourism is travel undertaken for purposes of recreation rather than business.
True / False
- (B) Statement I is true and matches the chapter’s own words. Statement II is false: the chapter places accountants, consultants and physicians among high-order (not low-order) services.
More for this chapter