Page 1
195
14 ? Economic Activities Around Us
CHAPTER
14
Monetary
value: Value
of something
that can be
measured
in terms of
money.
Economic Activities
Around Us
The root of prosperity is economic activity, the lack of it
brings material distress. The absence of fruitful economic
activity endangers both current prosperity and future growth.
— Kau?ilya’s Arthashastra
Introduction
In Chapter 13, we learnt about two types of activities –
economic and non- economic. Activities that create monetary
value are called economic activities. We also learnt about
the importance of non-economic activities. To understand
these activities better we will learn how economic activities
are classified and what differentiates them in this chapter.
1. How are economic activities
classified?
2. What differentiates these
activities to be grouped into
sectors?
3. How are the three sectors
interconnected?
The Big
Questions
14_100724_v8 .indd 195 14_100724_v8 .indd 195 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
Page 2
195
14 ? Economic Activities Around Us
CHAPTER
14
Monetary
value: Value
of something
that can be
measured
in terms of
money.
Economic Activities
Around Us
The root of prosperity is economic activity, the lack of it
brings material distress. The absence of fruitful economic
activity endangers both current prosperity and future growth.
— Kau?ilya’s Arthashastra
Introduction
In Chapter 13, we learnt about two types of activities –
economic and non- economic. Activities that create monetary
value are called economic activities. We also learnt about
the importance of non-economic activities. To understand
these activities better we will learn how economic activities
are classified and what differentiates them in this chapter.
1. How are economic activities
classified?
2. What differentiates these
activities to be grouped into
sectors?
3. How are the three sectors
interconnected?
The Big
Questions
14_100724_v8 .indd 195 14_100724_v8 .indd 195 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
196
Exploring Society: India and Beyond
Economic Life Around Us
Over the decades, the number of economic activities has
increased tremendously. For example, earlier most people
were involved in activities such as agriculture, livestock
rearing, production of tools, pottery and weaving cloth.
As societies progressed, the number of economic activities
through which people earn their livelihoods increased
vastly.
Today, there are diverse economic activities such as
manufacturing computers, mobile phones and drones;
working in banks, schools and hotels; driving various types
of vehicles for transportation; making furniture; tailoring
clothes using machines; creating software; repairing
refrigerators and washing machines; etc. Classifying all
these activities helps us to understand how they function
and the links they have with each other.
The Classification of Economic Activities
into Economic Sectors
Some economic activities share similar characteristics and
based on this, they can be grouped together or classified
into broader groups called economic sectors. The three
main types of economic sectors are primary, secondary and
tertiary economic sectors.
The illustration on the facing page maps out the broad
activities under these categories.
A. Primary activities
Those economic activities in which people are directly
dependent on nature to produce goods are known as
primary activities or primary sector economic activities.
Primary sector:
The group of activities that involves extraction of raw materials directly from
nature such as farming, fishing, forestry, etc.
Economic
Sectors:
Broad
groups that
include
various
activities
that help
with the
economic
prosperity
of a nation.
14_100724_v8 .indd 196 14_100724_v8 .indd 196 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
Page 3
195
14 ? Economic Activities Around Us
CHAPTER
14
Monetary
value: Value
of something
that can be
measured
in terms of
money.
Economic Activities
Around Us
The root of prosperity is economic activity, the lack of it
brings material distress. The absence of fruitful economic
activity endangers both current prosperity and future growth.
— Kau?ilya’s Arthashastra
Introduction
In Chapter 13, we learnt about two types of activities –
economic and non- economic. Activities that create monetary
value are called economic activities. We also learnt about
the importance of non-economic activities. To understand
these activities better we will learn how economic activities
are classified and what differentiates them in this chapter.
1. How are economic activities
classified?
2. What differentiates these
activities to be grouped into
sectors?
3. How are the three sectors
interconnected?
The Big
Questions
14_100724_v8 .indd 195 14_100724_v8 .indd 195 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
196
Exploring Society: India and Beyond
Economic Life Around Us
Over the decades, the number of economic activities has
increased tremendously. For example, earlier most people
were involved in activities such as agriculture, livestock
rearing, production of tools, pottery and weaving cloth.
As societies progressed, the number of economic activities
through which people earn their livelihoods increased
vastly.
Today, there are diverse economic activities such as
manufacturing computers, mobile phones and drones;
working in banks, schools and hotels; driving various types
of vehicles for transportation; making furniture; tailoring
clothes using machines; creating software; repairing
refrigerators and washing machines; etc. Classifying all
these activities helps us to understand how they function
and the links they have with each other.
The Classification of Economic Activities
into Economic Sectors
Some economic activities share similar characteristics and
based on this, they can be grouped together or classified
into broader groups called economic sectors. The three
main types of economic sectors are primary, secondary and
tertiary economic sectors.
The illustration on the facing page maps out the broad
activities under these categories.
A. Primary activities
Those economic activities in which people are directly
dependent on nature to produce goods are known as
primary activities or primary sector economic activities.
Primary sector:
The group of activities that involves extraction of raw materials directly from
nature such as farming, fishing, forestry, etc.
Economic
Sectors:
Broad
groups that
include
various
activities
that help
with the
economic
prosperity
of a nation.
14_100724_v8 .indd 196 14_100724_v8 .indd 196 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
197
14 ? Economic Activities Around Us
Classification of economic activities
into economic sectors
Primary sector
Agriculture
Mining
Fishing
Raising livestock
Forestry
Tertiary sector
Healthcare
Trade and logistics
Communication
Banking
Transportation
Secondary sector
Construction
Manufacturing
Water supply
Solar power
Electricity production
14_100724_v8 .indd 197 14_100724_v8 .indd 197 11-Jul-24 4:29:29 PM 11-Jul-24 4:29:29 PM
Page 4
195
14 ? Economic Activities Around Us
CHAPTER
14
Monetary
value: Value
of something
that can be
measured
in terms of
money.
Economic Activities
Around Us
The root of prosperity is economic activity, the lack of it
brings material distress. The absence of fruitful economic
activity endangers both current prosperity and future growth.
— Kau?ilya’s Arthashastra
Introduction
In Chapter 13, we learnt about two types of activities –
economic and non- economic. Activities that create monetary
value are called economic activities. We also learnt about
the importance of non-economic activities. To understand
these activities better we will learn how economic activities
are classified and what differentiates them in this chapter.
1. How are economic activities
classified?
2. What differentiates these
activities to be grouped into
sectors?
3. How are the three sectors
interconnected?
The Big
Questions
14_100724_v8 .indd 195 14_100724_v8 .indd 195 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
196
Exploring Society: India and Beyond
Economic Life Around Us
Over the decades, the number of economic activities has
increased tremendously. For example, earlier most people
were involved in activities such as agriculture, livestock
rearing, production of tools, pottery and weaving cloth.
As societies progressed, the number of economic activities
through which people earn their livelihoods increased
vastly.
Today, there are diverse economic activities such as
manufacturing computers, mobile phones and drones;
working in banks, schools and hotels; driving various types
of vehicles for transportation; making furniture; tailoring
clothes using machines; creating software; repairing
refrigerators and washing machines; etc. Classifying all
these activities helps us to understand how they function
and the links they have with each other.
The Classification of Economic Activities
into Economic Sectors
Some economic activities share similar characteristics and
based on this, they can be grouped together or classified
into broader groups called economic sectors. The three
main types of economic sectors are primary, secondary and
tertiary economic sectors.
The illustration on the facing page maps out the broad
activities under these categories.
A. Primary activities
Those economic activities in which people are directly
dependent on nature to produce goods are known as
primary activities or primary sector economic activities.
Primary sector:
The group of activities that involves extraction of raw materials directly from
nature such as farming, fishing, forestry, etc.
Economic
Sectors:
Broad
groups that
include
various
activities
that help
with the
economic
prosperity
of a nation.
14_100724_v8 .indd 196 14_100724_v8 .indd 196 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
197
14 ? Economic Activities Around Us
Classification of economic activities
into economic sectors
Primary sector
Agriculture
Mining
Fishing
Raising livestock
Forestry
Tertiary sector
Healthcare
Trade and logistics
Communication
Banking
Transportation
Secondary sector
Construction
Manufacturing
Water supply
Solar power
Electricity production
14_100724_v8 .indd 197 14_100724_v8 .indd 197 11-Jul-24 4:29:29 PM 11-Jul-24 4:29:29 PM
198
Exploring Society: India and Beyond
Economic Life Around Us
For example, work involving cultivation of grains and
vegetables from agricultural farms, collecting wood from
the forests, extracting coal from mines, fish from fisheries,
eggs from poultry farms, etc., are all primary sector
economic activities.
The most common primary activities are agriculture,
mining, fishing, raising livestock, forestry, etc. Below are
some of the types of activities within the primary sectors.
Raising livestock
Greenhouse farming Mining
Forestry Fish farming (fishery)
14_100724_v8 .indd 198 14_100724_v8 .indd 198 11-Jul-24 4:29:33 PM 11-Jul-24 4:29:33 PM
Page 5
195
14 ? Economic Activities Around Us
CHAPTER
14
Monetary
value: Value
of something
that can be
measured
in terms of
money.
Economic Activities
Around Us
The root of prosperity is economic activity, the lack of it
brings material distress. The absence of fruitful economic
activity endangers both current prosperity and future growth.
— Kau?ilya’s Arthashastra
Introduction
In Chapter 13, we learnt about two types of activities –
economic and non- economic. Activities that create monetary
value are called economic activities. We also learnt about
the importance of non-economic activities. To understand
these activities better we will learn how economic activities
are classified and what differentiates them in this chapter.
1. How are economic activities
classified?
2. What differentiates these
activities to be grouped into
sectors?
3. How are the three sectors
interconnected?
The Big
Questions
14_100724_v8 .indd 195 14_100724_v8 .indd 195 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
196
Exploring Society: India and Beyond
Economic Life Around Us
Over the decades, the number of economic activities has
increased tremendously. For example, earlier most people
were involved in activities such as agriculture, livestock
rearing, production of tools, pottery and weaving cloth.
As societies progressed, the number of economic activities
through which people earn their livelihoods increased
vastly.
Today, there are diverse economic activities such as
manufacturing computers, mobile phones and drones;
working in banks, schools and hotels; driving various types
of vehicles for transportation; making furniture; tailoring
clothes using machines; creating software; repairing
refrigerators and washing machines; etc. Classifying all
these activities helps us to understand how they function
and the links they have with each other.
The Classification of Economic Activities
into Economic Sectors
Some economic activities share similar characteristics and
based on this, they can be grouped together or classified
into broader groups called economic sectors. The three
main types of economic sectors are primary, secondary and
tertiary economic sectors.
The illustration on the facing page maps out the broad
activities under these categories.
A. Primary activities
Those economic activities in which people are directly
dependent on nature to produce goods are known as
primary activities or primary sector economic activities.
Primary sector:
The group of activities that involves extraction of raw materials directly from
nature such as farming, fishing, forestry, etc.
Economic
Sectors:
Broad
groups that
include
various
activities
that help
with the
economic
prosperity
of a nation.
14_100724_v8 .indd 196 14_100724_v8 .indd 196 11-Jul-24 4:29:18 PM 11-Jul-24 4:29:18 PM
197
14 ? Economic Activities Around Us
Classification of economic activities
into economic sectors
Primary sector
Agriculture
Mining
Fishing
Raising livestock
Forestry
Tertiary sector
Healthcare
Trade and logistics
Communication
Banking
Transportation
Secondary sector
Construction
Manufacturing
Water supply
Solar power
Electricity production
14_100724_v8 .indd 197 14_100724_v8 .indd 197 11-Jul-24 4:29:29 PM 11-Jul-24 4:29:29 PM
198
Exploring Society: India and Beyond
Economic Life Around Us
For example, work involving cultivation of grains and
vegetables from agricultural farms, collecting wood from
the forests, extracting coal from mines, fish from fisheries,
eggs from poultry farms, etc., are all primary sector
economic activities.
The most common primary activities are agriculture,
mining, fishing, raising livestock, forestry, etc. Below are
some of the types of activities within the primary sectors.
Raising livestock
Greenhouse farming Mining
Forestry Fish farming (fishery)
14_100724_v8 .indd 198 14_100724_v8 .indd 198 11-Jul-24 4:29:33 PM 11-Jul-24 4:29:33 PM
199
14 ? Economic Activities Around Us
THINK ABOUT IT
Can you think of any primary activities that you may have
seen in the past? What are the natural resources used
in these activities? Name two of them and discuss your
experiences with your classmates.
1.
2.
B. Secondary activities
Economic activities in which people are dependent on
outputs of the primary sector and transform them to
produce goods are known as secondary activities or
secondary sector economic activities. The secondary sector
includes the construction of buildings, roads, etc., and
providing utilities like water, electricity, gas and other such
necessities. It also includes the manufacturing of products
in factories and production units to process raw material
from the primary sector into some other form that can be
further sold or consumed. Some examples of secondary
sector activities include the processing of grains obtained
from agricultural fields to make flour in mills, extraction of
oil from groundnut and processing of tea leaves to derive
tea. Similarly, wood from the forest is converted into
furniture and paper, cotton is used to make clothes, and
steel from iron ore is used to make automobiles like cars,
trucks, etc.
Automobile factory Textile factory
Secondary
sector:
The group
of activities
that involves
processing of
raw materials
derived from
primary sector
into products
for sale or
consumption.
14_100724_v8 .indd 199 14_100724_v8 .indd 199 11-Jul-24 4:29:34 PM 11-Jul-24 4:29:34 PM
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