Economics — An Introduction: Exercise Solutions
Use this page alongside the official Samacheer Kalvi textbook. Solve every exercise question on your own first, then check the solutions below.
I. Fill in the Blanks
1. The producers of food grains are farmers 2. Collection of honey is a Primary occupation 3. The conversion of raw materials into finished goods is called manufacturing 4. According to Gandhiji the villages are the backbone of the nation 5. The percentage of population in the cities of Tamil Nadu is 47 Percent
II. Match the Following
| # | Column A | Column B | Match |
|---|---|---|---|
| 1 | Cattle rearing | (a) Secondary occupation | Primary occupation |
| 2 | Food processing | (b) Services (Tertiary) | Agro-based / Secondary occupation |
| 3 | Iron and Steel Industry | (c) Agro-based industry | Secondary occupation |
| 4 | Telephone | (d) Primary occupation | Services (Tertiary occupation) |
| 5 | Cotton Industry | (e) Marine-based industry | Agro-based industry |
III. Match and Find the Odd Pair
| # | Correct Pair | Odd One Out |
|---|---|---|
| 1 | Small scale Industry — Cattle rearing | Transaction of Money (Odd — it belongs to banking/services, not small-scale industry) |
| 2 | Forest based Industries — Paper Industries | Information Technology (Odd — IT is a service/tertiary occupation, not forest-based) |
| 3 | Services — Information Technology | Paper Industries (Odd — paper industry is secondary, not a service) |
| 4 | Banking — Transaction of Money | Cattle rearing (Odd — cattle rearing is primary, not banking/service) |
IV. Choose the Correct Answer
Q1. Agriculture is a ______ occupation.
- (a) Primary
- (b) Secondary
- (c) Tertiary
- (d) None of these
Agriculture involves cultivating crops and extracting produce from nature, which is a primary occupation.
Q2. Economic activities are divided on the basis of ______
- (a) location
- (b) use
- (c) income
- (d) population
Economic activities are classified as primary, secondary, and tertiary based on the use or nature of the activity.
Q3. Sugar Industries are a ______ activity.
- (a) Primary
- (b) Secondary
- (c) Tertiary
- (d) None of these
Sugar industries convert raw sugarcane (a primary product) into sugar, which is a manufacturing/secondary activity.
Q4. Agro-based industry — ______
- (a) Iron and Steel
- (b) Cement
- (c) Cotton
- (d) Aluminium
Cotton is an agro-based industry because cotton is an agricultural product. Iron and Steel, Cement, and Aluminium are mineral-based industries.
Q5. Dairy farming is a ______ sector.
- (a) Private
- (b) Co-operative
- (c) Public
- (d) Joint
Dairy farming in India largely operates under the co-operative sector (e.g., Amul, Aavin), where farmers form co-operative societies to process and sell milk.
V. Very Short Answer Questions
Q1. Define Sandhai.
Q2. What is called the barter system?
Q3. What is trade?
Q4. What is Savings?
Q5. What was the necessity for the invention of money?
VI. Short Answer Questions
Q1. What was the reason for the development of settlements near water bodies?
Q2. What are called secondary occupations?
Examples:
- Cotton textiles (converting cotton into cloth)
- Sugar mills (converting sugarcane into sugar)
- Iron and steel industries (converting iron ore into steel)
- Food processing industries
Q3. Name the city-centred industries.
- Electronics
- Shipbuilding
- Aluminium
- Chemical
- Auto parts
- Railways
- Leather
- Fertilizers
Q4. What are the three types of economic activities? Explain briefly.
| Type | Description | Examples |
|---|---|---|
| Primary | Activities that extract or produce raw materials from nature | Agriculture, fishing, mining, forestry, cattle rearing |
| Secondary | Activities that convert raw materials into finished goods through manufacturing | Cotton textiles, sugar mills, iron and steel, food processing |
| Tertiary | Activities that provide services rather than goods | Transport, communication, banking, trade, education, healthcare |
VII. Detailed / Long Answer Questions
Q1. What are the important primary occupations of your district?
| S.No. | Primary Occupation | Description |
|---|---|---|
| 1 | Agriculture | Cultivation of crops like paddy, sugarcane, cotton, and vegetables |
| 2 | Animal Husbandry | Rearing cattle, goats, poultry for milk, meat, and eggs |
| 3 | Fishing | Catching fish from rivers, lakes, ponds, and the sea |
| 4 | Forestry | Collecting forest products like timber, honey, wax, and medicinal plants |
| 5 | Mining | Extracting minerals like iron ore, bauxite, limestone |
| 6 | Grazing | Pastoral activities — moving livestock in search of pasture |
| 7 | Hunting and Gathering | Collecting wild fruits, roots, and other forest produce |
(The specific primary occupations may vary depending on your district. Observe and list the ones relevant to your area.)
Q2. What are the manufacturing industries in your district?
| S.No. | Manufacturing Industry | Description |
|---|---|---|
| 1 | Food manufacturing | Rice mills, flour mills, oil extraction, sugar mills |
| 2 | Textile manufacturing | Cotton spinning, weaving, garment making |
| 3 | Leather and allied products | Leather tanning, footwear, bags |
| 4 | Wood product manufacturing | Furniture, plywood, paper |
| 5 | Metal manufacturing | Steel fabrication, hardware, tools |
| 6 | Machinery manufacturing | Agricultural equipment, pumps, motors |
(The specific manufacturing industries may vary depending on your district.)
Q3. Classify industries on the basis of raw materials.
| S.No. | Type of Industry | Raw Material Source | Examples |
|---|---|---|---|
| 1 | Agro-based industries | Agricultural products | Cotton textiles, sugar mills, jute industry, food processing |
| 2 | Forest-based industries | Forest products | Paper mills, furniture making, building materials, lac |
| 3 | Mineral-based industries | Minerals extracted from earth | Cement, iron and steel, aluminium, petrochemicals |
| 4 | Marine-based industries | Products from the sea | Seafood processing, fish canning, sea weed products |
The classification is based on the type of raw material used. Agro-based industries use farm products, forest-based use forest products, mineral-based use minerals, and marine-based use ocean resources.
Q4. Explain the occupations in the service sector (tertiary occupations).
| S.No. | Service Sector | Description |
|---|---|---|
| 1 | Transport | Roadways, Railways, Waterways, Airways — movement of goods and people |
| 2 | Communication | Post, Telephone, Information Technology — exchange of information |
| 3 | Trade | Procurement and selling of goods — wholesale and retail |
| 4 | Banking | Money transactions, loans, savings accounts, financial services |
| 5 | Education | Schools, colleges, universities — imparting knowledge |
| 6 | Healthcare | Hospitals, clinics, pharmacies — providing medical services |
| 7 | Government Services | Administration, police, defence, public utilities |
| 8 | Tourism | Hotels, travel agencies, guides — serving tourists |
The service sector is the fastest-growing sector in India and contributes significantly to the GDP.
Q5. What are the features of cities?
| S.No. | Feature | Description |
|---|---|---|
| 1 | Employment opportunities | More job opportunities than villages — in industries, services, IT, and trade |
| 2 | Small-scale workers | Large number of small-scale and informal sector workers |
| 3 | Infrastructure | Well-paved roads, ports, airports, and railway stations that support trade and transport |
| 4 | Banking | Many branches of banks that help in circulation of money and boost the economy |
| 5 | Medical services | Advanced medical services and hospitals are easily available |
| 6 | Education | Schools, colleges, and universities provide quality education |
| 7 | Communication | Better telecommunication and internet connectivity |
VIII. Fill in the Tabular Column
| Occupations in Villages | Occupations in Cities | Occupations in Villages & Cities |
|---|---|---|
| Farming | Engineer | Carpenter |
| Grazing/Herding | Scientist | Teacher |
| Blacksmith | Musician | Weaver |
| Pottery | Journalist | Self-employed |
| Water Bearer | Doctor | Marketing |
IX. Additional Important Questions
Q1. Differentiate between needs and wants.
| Aspect | Needs | Wants |
|---|---|---|
| Definition | Things that are essential for survival | Things that are desired but not essential for survival |
| Examples | Food, water, shelter, clothing | Television, mobile phone, car, jewellery |
| Nature | Limited in number | Unlimited in number |
| Priority | Must be fulfilled first | Can be fulfilled after needs |
Q2. What is scarcity? How does it relate to economics?
Q3. Explain the evolution of money.
| Stage | System | Description |
|---|---|---|
| 1 | Barter System | People exchanged goods for goods directly. Problem: Double coincidence of wants — both parties must want what the other has. |
| 2 | Commodity Money | Certain commodities like cattle, grains, shells, and salt were used as a medium of exchange. |
| 3 | Metallic Money | Metals like gold, silver, and copper were used as coins. They were durable, divisible, and universally accepted. |
| 4 | Paper Money | Governments issued paper currency (notes) backed by gold reserves. Easier to carry than metal coins. |
| 5 | Modern Money | Currency notes and coins, cheques, debit cards, credit cards, digital payments (UPI, mobile wallets). |
Sher Shah Suri introduced the Rupiya in the 16th century, which later became the Indian Rupee.
Q4. Write a short note on Gandhiji's view on villages.
- India lives in its villages — the majority of the population depends on agriculture and rural occupations
- Village self-sufficiency (Gram Swaraj) was his ideal
- He promoted cottage industries like spinning (charkha), handloom, and handicrafts
- He believed that if villages prosper, the nation prospers
- He advocated for the development of rural areas to reduce poverty and dependence on cities
Common Mistakes to Avoid
1. Confusing primary, secondary, and tertiary occupations. Primary = extracting from nature (farming, fishing, mining). Secondary = manufacturing (textiles, steel, sugar). Tertiary = services (banking, transport, IT).
2. Calling agriculture a "secondary" occupation. Agriculture is a primary occupation because it involves extracting/producing from nature. Food processing (converting crops into packaged food) is secondary.
3. Confusing "agro-based" with "primary." Agro-based industries (cotton textiles, sugar mills) are secondary occupations because they process agricultural raw materials into finished goods. The farming that produces the raw material is primary.
4. Mixing up cattle rearing and dairy farming. Cattle rearing = primary occupation (raising animals). Dairy farming co-operative = co-operative sector (organisation of dairy farmers).
5. Forgetting to mention the barter system's main problem. The key problem of the barter system is "double coincidence of wants" — both parties must want what the other has. Money was invented to solve this.
6. Confusing savings with income. Income is the total money earned. Savings is the portion left after consumption — it is not the same as income.
7. Writing "cotton industry" as a primary occupation. The cotton industry is a secondary occupation (agro-based industry). Growing cotton is primary; manufacturing cotton cloth is secondary.
Exam Checklist
Before your exam, make sure you can:
- [ ] Define economics — the study of how people use limited resources to satisfy unlimited needs and wants
- [ ] Explain the three types of economic activities: Primary, Secondary, and Tertiary — with examples for each
- [ ] Define the barter system and explain its main problem (double coincidence of wants)
- [ ] Explain the evolution of money: Barter → Commodity → Metallic → Paper → Modern money
- [ ] Define savings — the portion of income left after consumption
- [ ] Define Sandhai (weekly/monthly village market) and trade (buying and selling)
- [ ] Classify industries by raw materials: Agro-based, Forest-based, Mineral-based, Marine-based — with examples
- [ ] List features of cities (employment, infrastructure, banking, medical services)
- [ ] Differentiate between occupations in villages, cities, and both
- [ ] Explain why settlements developed near water bodies
- [ ] Recall Gandhiji's view: "Villages are the backbone of the nation"
- [ ] Identify the odd one out in matching exercises (primary vs secondary vs tertiary)