14.  Economic Activities Around Us

 

Section–A : Multiple Choice Questions

1.   According to Kautilya’s Arthaśhāstra, what is the root of prosperity?
a) Non-economic activity
b) Economic activity
c) Material distress
d) Lack of growth
Answer: b)

2.   Activities that create monetary value are called:
a) Social activities
b) Non-economic activities
c) Economic activities
d) Cultural activities
Answer: c)

3.   Which of these can be measured in terms of money?
a) Emotional value
b) Monetary value
c) Social value
d) Cultural value
Answer: b)

4.   Broad groups that include various activities helping national prosperity are called:
a) Economic sectors
b) Social groups
c) Political parties
d) Local markets
Answer: a)

5.   Which of the following is NOT one of the three main economic sectors?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
Answer: d)

6.   Primary activities are directly dependent on:
a) Factories
b) Nature
c) Services
d) Technology
Answer: b)

7.   Which activity involves extraction of raw materials from nature?
a) Banking
b) Manufacturing
c) Primary sector
d) Tertiary sector
Answer: c)

8.   Cultivation of grains and vegetables is an example of:
a) Secondary sector
b) Primary sector
c) Tertiary sector
d) Service sector
Answer: b)

9.   Fishing and forestry are classified under:
a) Secondary sector
b) Primary sector
c) Tertiary sector
d) Logistics
Answer: b)

10. Secondary activities depend on outputs from the:
a) Tertiary sector
b) Service sector
c) Primary sector
d) Financial sector
Answer: c)

11. The process of transforming raw materials into goods takes place in the:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Natural sector
Answer: b)

12. Construction of buildings and roads belongs to the:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Agriculture sector
Answer: b)

13. Making flour from agricultural grain is a:
a) Primary activity
b) Secondary activity
c) Tertiary activity
d) Non-economic activity
Answer: b)

14. Converting wood into furniture is an example of the:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Nature sector
Answer: b)

15. Tertiary activities are also known as the:
a) Manufacturing sector
b) Industrial sector
c) Service sector
d) Natural sector
Answer: c)

16. Which sector supports primary and secondary activities?
a) Primary
b) Secondary
c) Tertiary
d) Traditional
Answer: c)

17. Transportation and banking are examples of:
a) Primary activities
b) Secondary activities
c) Tertiary activities
d) Non-economic activities
Answer: c)

18. Large buildings used for storing products before sale are called:
a) Factories
b) Warehouses
c) Retail stores
d) Dairies
Answer: b)

19. What is the full form of AMUL?
a) Anand Milk Union Limited
b) Anand Market Union Limited
c) Asian Milk Union Limited
d) Ahmedabad Milk Union Limited
Answer: a)

20. Who was the engineer behind the success of AMUL?
a) Sardar Vallabhbhai Patel
b) Tribhuvandas Patel
c) Dr. Verghese Kurien
d) Kautilya
Answer: c)

21. A formally organised group formed to meet economic needs is called a:
a) Middleman
b) Cooperative
c) Factory
d) Retailer
Answer: b)

22. People who buy from producers and sell to consumers for profit are called:
a) Members
b) Middlemen
c) Cooperatives
d) Farmers
Answer: b)

23. Heating milk to kill harmful bacteria is known as:
a) Manufacturing
b) Pasteurisation
c) Logistics
d) Extraction
Answer: b)

24. Selling goods in small quantities to consumers is called:
a) Wholesale
b) Export
c) Retail
d) Manufacturing
Answer: c)

25. Selling goods to another country is known as:
a) Retail
b) Import
c) Export
d) Cooperative
Answer: c)

26. Milking cows in the AMUL story belongs to the:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Service sector
Answer: a)

27. Converting milk into butter and cheese is a:
a) Primary activity
b) Secondary activity
c) Tertiary activity
d) Natural activity
Answer: b)

28. Transporting milk products by trucks is a:
a) Primary activity
b) Secondary activity
c) Tertiary activity
d) Extraction activity
Answer: c)

29. Recycling one tonne of paper saves:
a) 10 trees
b) 17 trees
c) 25 trees
d) 5 trees
Answer: b)

30. Recycling paper uses how much less energy than new paper production?
a) 50%
b) 20%
c) 70%
d) 90%
Answer: c)

31. Which of the following is a primary sector activity?
a) Healthcare
b) Mining
c) Communication
d) Software development
Answer: b)

32. Manufacturing computers is a:
a) Primary activity
b) Secondary activity
c) Tertiary activity
d) Traditional activity
Answer: b)

33. Software development belongs to the:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Extraction sector
Answer: c)

34. Electricity production mainly comes under the:
a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Non-economic sector
Answer: b)

35. A dairy is a place where milk is:
a) Drunk
b) Collected and stored
c) Manufactured into vehicles
d) Sold as clothes
Answer: b)

36. Who advised Anand farmers to form a cooperative?
a) Tribhuvandas Patel
b) Sardar Vallabhbhai Patel
c) Dr. Verghese Kurien
d) Kautilya
Answer: b)

37. Nandini milk brand belongs to:
a) Tamil Nadu
b) Andhra Pradesh
c) Karnataka
d) Bihar
Answer: c)

38. Mother Dairy mainly operates in:
a) Gujarat
b) Delhi-NCR
c) Punjab
d) Nagaland
Answer: b)

39. Coal mining is a primary activity because it involves:
a) Selling
b) Extraction from nature
c) Transportation
d) Manufacturing
Answer: b)

40. Economic sectors are interconnected mainly for:
a) Conversion of raw materials into finished goods
b) Creating distress
c) Reducing activities
d) Separating producers from consumers
Answer: a)

 

Section–B : Short Answer Type Questions

1.      What are economic activities?
Answer: Economic activities are those activities that create monetary value and help in earning income, such as farming, manufacturing, and trade.

2.      What are economic sectors?
Answer: Economic sectors are broad groups of economic activities that help in the economic development and prosperity of a nation.

3.      What is the primary sector?
Answer: The primary sector includes activities that involve extraction of raw materials directly from nature, such as agriculture, fishing, forestry, and mining.

4.      Mention any two examples of primary sector activities.
Answer: Farming and mining.

5.      What is the secondary sector?
Answer: The secondary sector includes activities that process raw materials obtained from the primary sector into finished or semi-finished goods.

6.      Give two examples of secondary sector activities.
Answer: Making flour in mills and extracting oil from groundnuts.

7.      What is the tertiary sector?
Answer: The tertiary sector includes activities that provide services to support the primary and secondary sectors, such as transport, banking, and communication.

8.      Why is the tertiary sector also called the service sector?
Answer: It is called the service sector because it provides services like transport, banking, education, and healthcare instead of producing goods.

9.      What is meant by monetary value?
Answer: Monetary value refers to the value of goods or services that can be measured in terms of money.

10.   What is a cooperative?
Answer: A cooperative is a voluntary association of people who come together to meet their common economic and social needs through collective ownership and democratic control.

11.   Who are middlemen?
Answer: Middlemen are individuals who buy goods from producers and sell them to consumers, charging a commission or profit for their service.

12.   What is pasteurisation?
Answer: Pasteurisation is the process of heating milk to a specific temperature to kill harmful bacteria and increase its shelf life.

13.   What is retail trade?
Answer: Retail trade involves selling goods in small quantities directly to the final consumer for personal use.

14.   What are warehouses?
Answer: Warehouses are large buildings used for storing goods safely before they are distributed or sold.

15.   Name two milk cooperative brands other than AMUL.
Answer: Nandini (Karnataka) and Mother Dairy (Delhi-NCR).

16.   How does recycling paper help the environment?
Answer: Recycling paper saves trees, reduces landfill waste, and uses much less energy and water compared to producing new paper.

17.   Give one example showing interdependence between primary and tertiary sectors.
Answer: Farmers grow vegetables (primary sector) and transport services carry them to markets (tertiary sector).

18.   What was the primary product in the AMUL story?
Answer: Milk obtained directly from cattle.

19.   What role did Tribhuvandas Patel play in the AMUL movement?
Answer: He provided leadership and organisational support in establishing AMUL in 1946.

20.   What is a factory?
Answer: A factory is a place where raw materials are processed into finished goods using machines and labour.

Section–C : Long Answer Type Questions

1. Explain the classification of economic activities into three sectors with examples.

Economic activities are classified into three sectors based on the nature of work performed.

The Primary Sector includes activities that depend directly on nature. These involve extraction of natural resources such as agriculture, fishing, forestry, and mining. For example, farming produces grains and vegetables, and mining extracts coal and minerals.

The Secondary Sector involves processing raw materials obtained from the primary sector into finished or semi-finished goods. Examples include converting wheat into flour, wood into furniture, and iron ore into steel.

The Tertiary Sector, also known as the service sector, provides services that support both primary and secondary sectors. Transportation, banking, education, healthcare, and communication are examples.

Together, these three sectors contribute to economic development.

2. Describe the interdependence between the primary, secondary, and tertiary sectors.

The three economic sectors are closely interconnected and depend on each other for smooth functioning.

The primary sector supplies raw materials such as crops, minerals, and milk. These raw materials are processed by the secondary sector into usable products like food items, machinery, and clothes. The tertiary sector provides essential services such as transportation, banking, storage, and marketing, enabling goods to move from producers to consumers.

For example, in textbook production, trees are cut for paper (primary), paper is processed and books are printed (secondary), and transportation and retail services distribute books (tertiary).

Without cooperation among sectors, economic activities cannot be completed efficiently.

3. Discuss the origin and impact of the AMUL cooperative movement in India.

AMUL was established in 1946 in Anand, Gujarat, to protect milk producers from exploitation by middlemen. Farmers were forced to sell milk at very low prices. On the advice of Sardar Vallabhbhai Patel, farmers formed a cooperative.

Tribhuvandas Patel provided leadership, and Dr. Verghese Kurien contributed technical expertise. The cooperative collected, processed, and marketed milk collectively.

AMUL ensured fair prices for farmers, eliminated middlemen, and improved rural income. It became India’s largest dairy cooperative and played a major role in the White Revolution, making India the world’s largest milk producer.

4. Explain how the secondary sector processes raw materials from the primary sector with examples.

The secondary sector transforms raw materials obtained from the primary sector into finished or semi-finished goods through manufacturing and construction.

For example:

·         Wheat grown by farmers is processed into flour in mills.

·         Cotton harvested from farms is converted into cloth in textile factories.

·         Iron ore mined from the earth is processed into steel used to make vehicles and machinery.

This sector adds value to raw materials, increases their utility, and generates employment. Without the secondary sector, raw materials would have limited economic value.

5. Why is the tertiary sector essential for the growth of the primary and secondary sectors?

The tertiary sector provides essential services that enable the primary and secondary sectors to function effectively.

Transportation moves raw materials to factories and finished goods to markets. Banking provides loans and financial support. Communication helps in coordination and marketing. Warehousing stores goods safely, and retailing delivers products to consumers.

Without services like transport, storage, finance, and communication, production and distribution would not be possible. Hence, the tertiary sector acts as a backbone for economic growth.

6. Explain the roles of Sardar Vallabhbhai Patel and Dr. Verghese Kurien in the milk cooperative movement.

Sardar Vallabhbhai Patel advised the farmers of Anand to form a cooperative to escape exploitation by middlemen. His vision helped farmers gain control over milk production and marketing.

Dr. Verghese Kurien, an engineer, provided technical and managerial leadership. He modernised milk processing, introduced scientific methods, and expanded AMUL into a nationwide brand.

Together, they strengthened the cooperative movement and transformed India’s dairy industry.

7. Describe the stages of milk production in AMUL, identifying the sectors involved.

Milk production in AMUL involves all three sectors:

·         Primary Sector: Farmers rear cattle and collect milk.

·         Secondary Sector: Milk is processed in factories to produce butter, cheese, milk powder, and ghee.

·         Tertiary Sector: Transportation, storage, marketing, and retail services distribute milk products to consumers.

This process shows how different sectors work together to deliver goods to the market.

8. What are economic activities? Why is it necessary to classify them into sectors?

Economic activities are activities that generate income and create monetary value, such as farming, manufacturing, and services.

Classification into sectors is necessary to understand the nature of activities, analyse economic development, and study employment patterns. It also helps in planning policies, identifying growth areas, and understanding interdependence among sectors.

Thus, sectoral classification simplifies economic analysis and supports national development.

9. Explain the environmental benefits of recycling paper.

Recycling paper has several environmental benefits. Recycling one tonne of paper saves about 17 trees, reduces landfill waste, and conserves natural resources. It also uses nearly 70% less energy and water compared to producing new paper.

By recycling paper, pollution is reduced, forests are protected, and sustainable development is promoted.

10. Analyze the role of middlemen in the Anand farmers’ movement and why they were removed.

Middlemen bought milk from farmers at very low prices and sold it at higher prices in urban markets. They often cheated and harassed farmers, reducing their income.

By forming a cooperative, farmers eliminated middlemen and took control of collection, processing, and marketing. This ensured fair prices and improved living standards.

Removing middlemen empowered farmers economically and socially.

11. Discuss how modern economic activities differ from those of the past.

In the past, most people were engaged in simple activities such as farming, pottery, and weaving. Production was small-scale and local.

Modern economic activities are diverse and technology-driven. They include manufacturing electronics, software development, professional services, and global trade.

Advancement in science and technology has increased productivity, specialisation, and employment opportunities.

12. Explain how the tertiary sector simplifies our daily lives with examples.

The tertiary sector provides services that make daily life convenient. Doctors and nurses provide healthcare, teachers offer education, and transport services help us travel.

Communication and internet services enable instant information sharing, while repair services fix electronic devices and vehicles.

These services save time, improve efficiency, and enhance quality of life.

13. What is the significance of the dairy cooperative model for social and economic prosperity?

The cooperative model promotes collective ownership and democratic decision-making. It empowers farmers, women, and weaker sections by giving them control over production and profits.

It increases income, reduces exploitation, and promotes equality. The dairy cooperative model also strengthens rural development and social unity.

Thus, cooperatives contribute to both economic growth and social justice.

14. Explain the concept of monetary value and its relation to economic activities.

Monetary value refers to the worth of goods or services measured in money. Activities that generate such value are called economic activities.

For example, selling crops or providing services like teaching and banking create income. Non-economic activities may be socially important but do not create measurable financial value.

Monetary value helps distinguish economic activities from non-economic ones.

15. Using the example of textbook production, explain the flow of goods through different sectors.

Textbook production begins in the primary sector, where trees are cut to obtain wood pulp. In the secondary sector, pulp is processed into paper and printed into books.

The tertiary sector provides transportation, storage, marketing, and retail services to distribute textbooks to schools and students.

This example clearly shows how goods move through different economic sectors before reaching consumers.

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