📘 Long Questions and Answers — Economic Activities Around Us

Section A: Understanding Economic Activities (Q1–Q8)

Q1. Explain the meaning of economic activities with examples.
Economic activities are human actions done to earn income and meet needs. They involve the production, distribution, and consumption of goods and services. They are classified into:

• Primary activities – Use natural resources (farming, fishing, mining).
• Secondary activities – Involve processing raw materials (textiles, steel plants).
• Tertiary activities – Provide services (transport, education, banking).
  For example, a farmer grows wheat (primary), a mill converts it into flour (secondary), and a shopkeeper sells it (tertiary). All three activities together form the base of an economy.

Q2. Differentiate between primary, secondary, and tertiary activities with examples.
Economic activities are grouped into three sectors:

• Primary activities: Directly use natural resources. Examples – farming, forestry, mining.
• Secondary activities: Convert raw materials into products. Examples – sugar mills, textile factories.
• Tertiary activities: Provide services supporting other sectors. Examples – transport, banking, IT.

📊 Table: Comparison

All three sectors are interdependent, ensuring a complete economic cycle.

Q3. Why are economic activities essential for survival and growth of society?
Economic activities provide:

• Food and goods: Farming gives food, industries produce daily-use goods.
• Employment: They create jobs for millions.
• Services: Education, transport, and health improve quality of life.
• Trade and income: Economic activities generate wealth and connect regions.
  Without economic activities, people would not have the essentials to live or the opportunities to grow. For example, farmers grow food, industries process it, traders sell it, and services deliver it—ensuring survival and development.

Q4. How do natural resources and geography influence economic activities?
Geography shapes the type of work people do:

• Plains → Farming of wheat and rice.
• Hills → Tea, coffee, fruits.
• Coastal regions → Fishing, coconut farming, shipping.
• Mineral-rich areas → Mining, steel industries.

📊 Table: Resource Influence

Thus, natural resources decide livelihoods in every region.

Q5. Explain interdependence of economic activities with an example.
Economic activities are interconnected. For example:

• A farmer grows cotton (primary).
• A textile mill turns cotton into cloth (secondary).
• A trader sells the cloth (tertiary).
• Transport services move goods between places.
  This cycle shows that no sector works alone. Each depends on the other to reach consumers. Without farming, industries lack raw material, and without services, trade cannot happen.

Q6. Why are services called the backbone of modern economic life?
Services connect all sectors:

• Transport delivers farm produce to markets.
• Banking provides loans to industries.
• Education trains skilled workers.
• Healthcare keeps workers healthy.
  In modern times, IT services link countries globally. For instance, India’s IT industry supports foreign companies through outsourcing. Services create jobs, support growth, and improve living standards.

Q7. Differentiate between goods and services with suitable examples.

• Goods: Tangible, physical items like wheat, clothes, machines. Produced in farming and industries.
• Services: Intangible activities that provide support. Examples include teaching, transport, and banking.

📊 Table: Goods vs Services

Both are equally important, as services ensure goods reach people effectively.

Q8. What is the role of livelihood in economic activities?
Livelihood means the way people earn money to meet needs. Different activities provide different livelihoods:

• Farmers earn by selling crops.
• Traders earn through selling goods.
• Workers earn salaries in industries.
• Teachers, doctors, and drivers earn by providing services.
  Thus, economic activities provide diverse livelihoods, ensuring people survive and society grows.

Section B: Farming – The Primary Activity (Q9–Q15)

Q9. What are the different types of farming practiced in India?

• Subsistence farming: Crops for family use, small fields, traditional tools.
• Commercial farming: Crops for sale in markets, use of machines, fertilizers.
• Mixed farming: Crops + animal rearing together.
• Shifting agriculture: Land cleared, farmed, then abandoned for recovery.
  Each type is suited to local needs and geography.

Q10. Why is farming called the backbone of India’s economy?

• Provides food for the population.
• Supplies raw material to industries (cotton, jute, sugarcane).
• Employs over half of India’s workforce.
• Supports trade by exporting crops like tea and spices.
  Without farming, food security, industry, and employment would collapse.

Q11. How does geography affect farming? Give examples.

• Plains → Fertile alluvial soil → Wheat, rice.
• Plateaus → Black soil → Cotton, sugarcane.
• Hills → Tea, coffee, fruits.
• Coasts → Rice, coconut, fisheries.

Example: Assam and Nilgiris grow tea due to hilly terrain and rainfall, while Punjab grows wheat due to fertile plains.

Q12. Explain the importance of irrigation in farming.
Irrigation provides water when rainfall is insufficient.

• Methods include canals, wells, tube wells, and dams.
• Ensures year-round crop production.
• Increases yield and food security.
  Example: Punjab and Haryana use canal irrigation extensively, making them India’s “food bowl.”

Q13. Compare subsistence and commercial farming.

📊 Table: Comparison

Both are vital: subsistence ensures family survival, while commercial farming supplies markets.

Q14. How do farmers support industries?
Farmers provide raw materials like:

• Cotton → Textile industry.
• Sugarcane → Sugar mills.
• Jute → Rope and sack industries.
  Without agriculture, industries cannot produce goods. Farming thus sustains secondary activities.

Q15. What challenges do farmers face in India?

• Dependence on monsoon rains.
• Low productivity due to small landholdings.
• Lack of modern machines and irrigation.
• Low prices for crops, leading to poverty.
• Burden of loans and debts.
  Government schemes and technology are essential to overcome these issues.

Section C: Trade – Exchange of Goods and Services (Q16–Q21)

Q16. What is trade? Explain its types.
Trade is the buying and selling of goods and services.

• Local trade: Within towns and villages.
• National trade: Between states in a country.
• International trade: Between countries.
  Example: India exports tea to Britain (international), while Punjab sends wheat to Kerala (national).

Q17. Why is trade important in economic life?

• Provides income to traders and farmers.
• Ensures availability of goods everywhere.
• Encourages specialization in production.
• Promotes cultural exchange.
  Trade connects rural and urban areas, making economies stronger.

Q18. How does geography affect trade?

• Coastal areas → International trade hubs (Mumbai, Chennai).
• River valleys → Active local trade.
• Remote/desert areas → Limited trade due to transport issues.
  Thus, location and resources decide trade opportunities.

Q19. How does trade support farmers and artisans?
Trade allows farmers and artisans to sell products.

• Weekly markets help sell vegetables, grains, or handicrafts.
• Traders connect rural producers to urban markets.
  This gives income and sustains rural livelihoods.

Q20. Compare local, national, and international trade.

📊 Table: Comparison

All three levels of trade connect producers and consumers.

Q21. How does trade promote cultural exchange?
Trade spreads goods, ideas, and traditions.

• Indian spices became popular worldwide.
• Foreign products like silk entered India.
• Trade brought cultural diversity and global connections.
  Thus, trade is not just economic but also cultural in nature.

Section D: Industry & Services (Q22–Q30)

Q22. What is industry? Explain its importance.
Industry is the manufacturing of goods from raw materials. Importance:

• Provides jobs.
• Produces essential goods.
• Supports farming by processing crops.
• Earns foreign exchange through exports.
  Industries transform natural resources into valuable products, making them vital for modern economies.

Q23. What are agro-based industries? Give examples.
Agro-based industries use agricultural products as raw materials.

• Cotton → Textile mills.
• Sugarcane → Sugar mills.
• Jute → Rope industries.
  These industries support farmers and create jobs in rural areas.

Q24. What are mineral-based industries? Give examples.
Mineral-based industries use minerals as raw materials.

• Iron and steel plants.
• Cement industries.
• Aluminum industries.
  They are usually located near mineral deposits like Jharkhand and Odisha.

Q25. Distinguish between small-scale and large-scale industries.

📊 Table: Comparison

Both types are important for employment and production.

Q26. Why are industries concentrated near raw material sources?

• Saves transport cost of raw materials.
• Ensures steady supply of inputs.
• Examples: Iron and steel plants near mines, cotton mills near cotton fields.
  Thus, industries grow close to resource-rich regions.

Q27. What role does IT industry play in India?
India’s IT industry provides software services globally.

• Cities like Bengaluru and Hyderabad are hubs.
• Creates jobs for youth.
• Earns foreign currency through outsourcing.
  IT has made India an important player in the global economy.

Q28. What are services? Give examples.
Services are tertiary activities that provide assistance. Examples:

• Education by teachers.
• Healthcare by doctors.
• Transport by buses and railways.
  Services support both farming and industries, making them crucial.

Q29. How does tourism support the economy?

• Creates jobs in hotels, transport, and guiding.
• Promotes cultural exchange.
• Earns foreign exchange.
  For example, the Taj Mahal attracts lakhs of tourists every year, boosting local businesses.

Q30. Explain interdependence of farming, industry, trade, and services with an example.
Example of cotton:

• Farming: Cotton grown by farmers.
• Industry: Textile mills make cloth.
• Trade: Cloth sold in markets.
• Services: Transport delivers cotton and cloth.
  This shows all activities are linked in a cycle. Each sector depends on the others for functioning.

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