Economic Activities Around Us — Mastery

Q1. Which list contains only the kinds of diverse modern economic activities mentioned in the chapter's introduction?

• A. Making drones, creating software, repairing refrigerators
• B. Sleeping, playing, eating
• C. Praying, meditating, resting
• D. Breathing, walking, talking

Q2. Cultivating grains and vegetables on agricultural farms is given as an example of which sector, and on what does it depend?

• A. Secondary; depends on factories
• B. Tertiary; depends on services
• C. Primary; depends directly on nature
• D. Non-economic; depends on no resources

Q3. Which group lists only tertiary-sector activities?

• A. Banking, communication, software development
• B. Mining, fishing, forestry
• C. Manufacturing, construction, electricity production
• D. Farming, weaving cloth, making furniture

Q4. A company builds roads and bridges and also lays water pipelines. According to the chapter, this work is part of the

• A. Primary sector
• B. Secondary sector
• C. Tertiary sector
• D. Service sector

Q5. When AMUL's milk collection grew very large, the farmers decided to set up a factory to do what?

• A. Sell raw milk only
• B. Make other products like butter and milk powder
• C. Stop collecting milk
• D. Export cows abroad

Q6. Healthcare, trade and logistics, and communication, shown in the chapter's classification chart, all belong to which sector?

• A. Primary sector
• B. Secondary sector
• C. Tertiary sector
• D. Mixed primary and secondary

Q7. Which statement correctly describes 'retail' as defined in the chapter?

• A. Selling goods in bulk to other factories
• B. The sale of goods in small quantities for use by the end consumer rather than for resale
• C. Storing goods in warehouses
• D. Producing goods from raw materials

Q8. According to the chapter, why is classifying economic activities useful?

• A. It increases the price of goods
• B. It helps us understand how activities function and the links they have with each other
• C. It reduces the number of activities
• D. It makes activities non-economic

Q9. Collecting wood from forests is a primary activity, but turning that wood into furniture is

• A. Still primary
• B. Secondary
• C. Tertiary
• D. Non-economic

Q10. Which best captures the role of the tertiary sector in the economy?

• A. It extracts raw materials from nature
• B. It provides support and services to people in the primary and secondary sectors
• C. It only manufactures goods in factories
• D. It replaces the need for the other two sectors

Q11. In the cooperative model, decisions on production, pasteurisation and sale of milk were taken by

• A. The middlemen
• B. The milk producers (members) collectively
• C. The state government
• D. Only Verghese Kurien

Q12. Processing tea leaves to make tea and extracting oil from groundnut are both secondary activities because they

• A. Grow the crop in fields
• B. Transport the products to markets
• C. Process primary-sector raw materials into a usable form
• D. Provide services to customers

Q13. A student claims, 'If the tertiary sector stopped, the goods made by the primary and secondary sectors would still easily reach buyers.' Evaluate this claim.

• A. Correct, because goods sell themselves
• B. Incorrect, because transport, trade and retail (tertiary) are needed to move and sell goods
• C. Correct, because the primary sector handles sales
• D. Incorrect, because the secondary sector also does transport

Q14. In the AMUL example, which single product passes through all three sectors as milk → dairy products → shops?

• A. Cotton
• B. Milk
• C. Coal
• D. Paper

Q15. 'Fish farming (fishery)' shown in the chapter as obtaining fish from fisheries is a primary activity because the fish are

• A. Manufactured in a plant
• B. Obtained directly from a natural process
• C. Imported from abroad
• D. Sold in supermarkets

Q16. Earlier, most people were involved in agriculture, livestock rearing, tool-making, pottery and weaving. What does the chapter say happened as societies progressed?

• A. These activities disappeared completely
• B. The number of activities through which people earn their livelihoods increased vastly
• C. Only pottery survived
• D. People stopped earning livelihoods

Q17. Why can the same act of 'transport' appear in the AMUL story, the paper story and a farmer's example, always as tertiary?

• A. Because transport produces new goods each time
• B. Because transport is a service that moves goods between people, supporting other sectors
• C. Because transport extracts raw materials
• D. Because transport is non-economic

Q18. Why does the chapter group many different activities into only three broad sectors instead of listing each one separately?

• A. Because there are only three activities in total
• B. Because grouping by shared characteristics makes the economy easier to understand
• C. Because the three sectors never overlap
• D. Because each sector has exactly the same activities

Q19. Sardar Patel advised the farmers to form a cooperative so that they could

• A. Sell milk only to middlemen
• B. Become independent and handle collection, processing and distribution themselves
• C. Move to the city
• D. Stop producing milk

Q20. Which of the following is the best definition of the secondary sector?

• A. Activities that extract raw materials from nature
• B. Activities that process raw materials from the primary sector into products for sale or consumption
• C. Activities that only provide services
• D. Activities that earn no monetary value

Q21. Pasteurising milk in an AMUL plant is a secondary-sector step because it

• A. Obtains milk from cows
• B. Treats and transforms a primary product to preserve it
• C. Delivers milk to shops
• D. Provides banking services

Q22. The paper example and the AMUL example are both used in the chapter to teach the same key idea. What is it?

• A. Primary activities are the most profitable
• B. All three sectors are interdependent and work together to make a final product
• C. Services are not real economic activities
• D. Recycling is the only economic activity

Q23. From the chapter's photographs, which set shows only primary-sector activities?

• A. Greenhouse farming, mining, forestry
• B. Automobile factory, textile factory, pharmaceutical factory
• C. Software development, restaurant service, airport service
• D. Construction, water supply, electricity production

Q24. Why does the chapter say some tertiary services are important even though 'we may not be able to see' them?

• A. Because they produce visible goods
• B. Because services like communication and software still play a very important role
• C. Because they are non-economic
• D. Because they replace the primary sector

Q25. What does AMUL stand for, as given in the chapter?

• A. All Milk Union of Ludhiana
• B. Anand Milk Union Limited
• C. Andhra Milk Unity League
• D. Amul Milk Universal Limited

Q26. Which pair correctly shows a primary input and the secondary product made from it?

• A. Cloth → cotton
• B. Cotton → cloth
• C. Furniture → wood
• D. Steel → iron ore

Q27. AMUL not only sells in Indian shops but also sends products to other countries. The act of selling to other countries is called

• A. Retail
• B. Import
• C. Export
• D. Pasteurisation

Q28. A child helps cook food at home without payment, while a chef cooks in a restaurant for wages. Which is the economic activity and why?

• A. The child's, because cooking is useful
• B. The chef's, because it creates monetary value
• C. Both, because both involve cooking
• D. Neither, because food is a basic need

Q29. Recycling paper saves trees, energy and water. How does this connect to the chapter's idea of sectors?

• A. It removes the need for the tertiary sector
• B. It reduces pressure on the primary sector by reusing material instead of cutting more trees
• C. It turns paper into a primary product
• D. It makes manufacturing unnecessary

Q30. Which statement best summarises the whole chapter's main lesson about economic activities?

• A. Only the primary sector matters for a nation
• B. Economic activities are classified into three interdependent sectors that together drive prosperity
• C. Services are unrelated to goods
• D. Manufacturing is the only economic sector