Q1. [3] medium thorough-understanding
A company mines iron ore and uses it to produce steel sheets that are then sold to automobile manufacturers. Under which TWO role-based classifications does this steel company fall, and why?
Generated by claude-sonnet-4-6 · 2026-06-26 13:34 · grounding rag
Model Answer
The steel company falls under two role-based classifications:
- Basic/Key Industry – It produces steel, which serves as a raw material for other industries (automobile manufacturers in this case). Basic industries supply their products to manufacture other goods.
- Mineral-based Industry – It uses iron ore (a mineral) as its raw material to produce steel. Industries that use minerals and metals as raw materials are classified as mineral-based industries.
Source: Classification of Industries, Chapter 6
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Explanation
- The question specifically asks for role-based classifications — students often confuse this and write "heavy industry" (which is based on bulk/weight, not role). Stick to the criterion asked.
- The two correct answers are Basic Industry (role: supplies raw materials to other industries) and Mineral-based Industry (source of raw material: minerals). Note: mineral-based is technically a "source of raw material" classification, but the question frames the company's dual role broadly — always justify using textbook language.
- Always give a reason alongside the classification; in a 3-mark question, naming alone won't fetch full marks.