Economic Activities Around Us – MCQs with Answers and Explanations
CBSE Class 6 — Social Science
Theme E — Economic Life Around Us
Chapter 14: Economic Activities Around Us — 40 MCQs with answers and clear explanations for NCERT-aligned revision.
Type: MCQs (40)
Class: 6 | Subject: Social Science
This set contains 40 multiple choice questions grouped topic-wise. Use the "Show Answer & Explanation" button for instant feedback and concept clearing.
Topic — Farming and Agriculture (Questions 1–8)
1. Which of the following is NOT a farming activity?
Correct Answer: C. Selling clothes in a shop
Explanation:
Farming includes activities directly related to cultivating land and raising animals — sowing, irrigation and harvesting. Selling clothes is a trade/service activity, not farming.
2. Which irrigation method saves the most water?
Correct Answer: B. Drip irrigation
Explanation:
Drip irrigation delivers water directly to plant roots, reducing evaporation and runoff, making it highly water-efficient compared to flood or canal systems.
3. Which crop is typically grown in waterlogged fields?
Correct Answer: B. Rice
Explanation:
Rice requires standing water for proper growth, hence it is commonly cultivated in flooded or waterlogged fields.
4. What is the main purpose of crop rotation?
Correct Answer: B. Improve soil fertility
Explanation:
Crop rotation helps prevent depletion of specific nutrients and reduces pest build-up, maintaining better soil health.
5. High-yielding varieties (HYVs) are developed to:
Correct Answer: B. Increase crop production
Explanation:
HYVs are bred to produce more yield per hectare and resist certain diseases, helping boost production when combined with good practices.
6. Which of the following is a cash crop?
Correct Answer: C. Cotton
Explanation:
Cash crops like cotton are grown mainly for sale in markets rather than for local consumption.
7. Which activity is part of post-harvest management?
Correct Answer: B. Threshing
Explanation:
Threshing separates grains from stalks and is a key post-harvest operation along with storage and processing.
8. Which technology helps farmers get market prices and weather updates?
Correct Answer: B. Mobile phones and internet
Explanation:
Mobile phones and internet let farmers access price information, weather forecasts and farming advice quickly and cheaply.
Topic — Trade and Markets (Questions 9–16)
9. What is barter?
Correct Answer: A. Exchanging goods for goods
Explanation:
Barter is the direct exchange of one good for another without money. It requires both parties to want each other's goods.
10. Which of the following is a function of markets?
Correct Answer: B. Facilitate exchange of goods
Explanation:
Markets are where buyers and sellers meet to exchange goods and services; they don't directly grow crops or supply utilities.
11. What does a wholesaler do?
Correct Answer: B. Buys in bulk from producers and sells to retailers
Explanation:
Wholesalers bridge producers and retailers by buying large quantities and distributing them to shops and markets.
12. Why are transport and communication important for trade?
Correct Answer: B. They help move goods and share information
Explanation:
Transport moves goods to markets while communication shares price and demand information, both essential for effective trade.
13. A weekly haat in a village mainly helps by:
Correct Answer: B. Providing a place to buy and sell goods locally
Explanation:
Weekly markets let villagers sell produce and buy essentials, acting as local economic hubs.
14. Which is an example of long-distance trade?
Correct Answer: B. Exporting spices to another country
Explanation:
Long-distance trade involves moving goods across regions or countries, unlike local sales within nearby areas.
15. Money was introduced because:
Correct Answer: B. It acts as a common medium of exchange
Explanation:
Money overcomes barter limitations by providing a standard value for goods and services, making trade easier.
16. Middlemen in trade mainly help by:
Correct Answer: B. Connecting producers to buyers
Explanation:
Middlemen handle storage, transport and sales, helping producers reach larger markets they might not access directly.
Topic — Industry and Manufacturing (Questions 17–26)
17. Which is a small-scale industry example?
Correct Answer: B. Handloom weaving
Explanation:
Small-scale industries like handloom use less capital and often run from homes or small units, providing local employment.
18. Industries often locate near raw materials to:
Correct Answer: B. Reduce transport costs
Explanation:
Being near raw materials cuts down on transport and handling expenses and ensures steady supply for production.
19. Which industry can be set up near forests?
Correct Answer: A. Paper mill
Explanation:
Paper mills often locate near forests to use timber as raw material, though sustainable sourcing is important.
20. Cottage industries mainly provide:
Correct Answer: B. Employment and supplemental income in rural areas
Explanation:
Cottage industries use local skills and resources, providing extra income and preserving traditional crafts.
21. Industrial pollution mainly affects:
Correct Answer: B. Environment and people's health downstream
Explanation:
Untreated industrial waste can pollute air, water and soil, harming ecosystems and human health, especially downstream communities.
22. An industrial estate provides shared facilities like roads and power. This helps small industries by:
Correct Answer: B. Reducing capital cost and improving access to services
Explanation:
Shared infrastructure lowers entry costs and provides better access to markets and labour for small businesses.
23. Which is NOT a factor affecting location of industries?
Correct Answer: C. Distance from planets
Explanation:
Industries consider raw materials, labour, transport and utilities. Distance from planets is irrelevant.
24. Processing agricultural produce near farms is beneficial because:
Correct Answer: B. Reduces transport costs and spoilage
Explanation:
Local processing adds value, preserves produce and cuts transport delays, helping farmers earn better prices.
Topic — Services (Questions 25–32)
25. Which of the following is a service activity?
Correct Answer: B. Teaching
Explanation:
Services provide help or expertise (like teaching, healthcare, transport) rather than producing physical goods.
26. Banks help farmers mainly by:
Correct Answer: B. Providing loans and savings options
Explanation:
Banks offer credit for inputs and secure savings, which support investment and risk management for farmers.
27. How do health services indirectly support the economy?
Correct Answer: C. By improving people's health and productivity
Explanation:
Healthy people can work regularly and learn better, supporting economic growth through consistent productivity.
28. Which service helps students gain skills for jobs?
Correct Answer: B. Education
Explanation:
Education provides knowledge and skills needed for employment in industries and services.
29. Transport services help economies by:
Correct Answer: B. Connecting markets and reducing travel time
Explanation:
Good transport links allow people and goods to move efficiently, expanding employment and trade opportunities.
30. Digital marketplaces help small producers by:
Correct Answer: B. Connecting them to wider customers online
Explanation:
Online platforms let local makers sell nationally or internationally, increasing markets and incomes.
Topic — Regional Variation and Geography (Questions 31–36)
31. Which economic activity is common in coastal areas?
Correct Answer: B. Fishing
Explanation:
Coastal regions have access to the sea, making fishing and related activities key livelihoods.
32. Hilly regions often practice:
Correct Answer: A. Terrace farming
Explanation:
Terrace farming allows cultivation on slopes by creating flat steps, preventing soil erosion and using water efficiently.
33. Minerals in a region mainly lead to jobs in:
Correct Answer: A. Mining and processing
Explanation:
Mineral-rich areas develop extraction and processing industries, creating local employment but needing environmental care.
34. Which factor does NOT influence economic activities of a region?
Correct Answer: D. Favourite colour of residents
Explanation:
Climate, soil and resources affect livelihoods; personal preferences like colour choice do not determine regional economies.
35. Coastal regions may have which industry due to sea access?
Correct Answer: A. Port-based trade
Explanation:
Ports enable ships to load and unload goods, promoting trade and related services in coastal areas.
36. Plains are usually suitable for:
Correct Answer: A. Intensive agriculture and large farms
Explanation:
Flat, fertile plains allow mechanisation and large-scale farming of crops like wheat and rice.
Topic — Challenges, Sustainability & Trends (Questions 37–40)
37. Which practice helps conserve soil fertility?
Correct Answer: B. Crop rotation and organic manure
Explanation:
Rotating crops and using organic inputs maintain nutrients and soil structure, supporting long-term productivity.
38. Tourism can harm local environments if:
Correct Answer: B. Leads to pollution and waste
Explanation:
Unchecked tourism can cause litter, pollution and strain on local resources, harming ecosystems and communities.
39. Globalization helps local producers by:
Correct Answer: B. Connecting them to national and international markets
Explanation:
Global links and communication open wider markets and opportunities, though they also increase competition.
40. Which is a way to support farmers' incomes?
Correct Answer: B. Providing fair prices, storage and market information
Explanation:
Access to fair pricing, storage facilities and timely market information helps farmers plan sales and get better incomes.