Which of the following is a major reason for the growth of the service sector in India? MCQ with Answer and Explanation

Which of the following is a major reason for the growth of the service sector in India?
A. Only agricultural growth
B. Complete absence of industrial growth
C. Liberalisation, IT revolution and rising incomes
D. Decline in demand for services
Answer: Option C
Solution (By JKSSB Mock Tests)
The service sector in India has grown rapidly due to economic liberalisation, the information technology revolution, rising incomes and global demand for services such as software and BPO.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a non-tax revenue of the government?
A. Interest receipts
B. Corporation tax
C. Income tax
D. Customs duty

Correct Answer: Option A


Explanation:
Non-tax revenue includes interest receipts, dividends and profits from PSUs, fees, fines, etc. Taxes like corporation tax, income tax and customs duty are tax revenues.

This question belongs to: Economy GK Economy Set 1
Question #2
Which institution primarily provides short-term financial assistance to countries facing balance of payments problems?
A. ADB
B. World Bank
C. IMF
D. WTO

Correct Answer: Option C


Explanation:
The IMF provides short-term financial assistance to countries with balance of payments problems.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the 'Real Business Cycle' theory?
A. Fiscal policy is the primary driver of cycles
B. Business cycles are primarily caused by monetary shocks
C. Sticky prices are the main source of fluctuations
D. Business cycles are primarily driven by real shocks, especially technology shocks

Correct Answer: Option D


Explanation:
Real Business Cycle theory attributes macroeconomic fluctuations mainly to real shocks, particularly technological disturbances, under the assumption of continuous market clearing and rational expectations.

This question belongs to: Economy GK Economy Set 1