Question

With reference to limitations of the primary sector, consider the following:

1. It depends heavily on natural resources like land and weather.

2. It can expand its output nearly without limits by capital and technology additions.

3. It is subject to diminishing returns due to reliance on a fixed factor.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

Answer:

C. 1 and 3 only

• Primary sector is resource-bound and land-based ⇒ statement 1 correct.
  It faces diminishing returns in production ⇒ 3 correct.
  Unlike industry and services, it cannot expand “without limits” ⇒ 2 is wrong.