Economic Activities Around Us Class 6 Notes

Economic Activities Around Us Class 6 Notes

Economic Activities Around Us Class 6 Notes

Economic Activities

1. Economic activities share characteristics, grouped into economic sectors.
2. Primary, secondary, and tertiary sectors are main types.

Primary Activities

1. Economic activities in which people are directly dependent on nature to produce goods are known as primary activities or primary sector economic activities.
2. Examples include farming, wood collection, coal extraction, fisheries, poultry farming.
3. Common activities include agriculture, mining, fishing, livestock raising, and forestry.

Secondary Activities

1. Secondary sector: The group of activities that involves processing of raw materials derived from primary sector into products for sale or consumption.
2. Involves construction of buildings, roads, and utilities.
3. Involves manufacturing of products in factories by processing raw materials.
4. Examples include processing grains for flour, oil extraction, and tea extraction.
5. Wood from forests is converted into furniture and paper, cotton for clothes, and steel from iron ore for automobiles.

Tertiary Activities

1. Tertiary Sector: The group of activities that involves the provision of services which complement both primary and secondary sectors.
2. Includes services not visible but are important.
3. Examples include truck drivers transporting grains and vegetables, fruit vendors selling produce, doctors, nurses, teachers, lawyers, and pilots providing services.
4. Services include electronic repair and service, vehicle repair, and electricity supply.
5. Examples include communication services, software development, and services at various establishments.
6. Also known as the service sector.

Interdependence Among Economic Sectors

1. The three economic sectors play an important role in the conversion of natural raw materials into finished products.
2. Anand Milk Union Limited (AMUL) is an example of how these sectors interconnect and support each other.

The Story of AMUL

1. In the early 1940s, farmers in Anand district in Gujarat sold milk to- neighbouring villages, relying on middlemen who bought the milk in bulk at low prices.
2. Sardar Vallabhbhai Patel, a national leader, advised farmers to form a cooperative to become independent and stop relying on middlemen.
3. AMUL was set up in 1946 under the leadership of Tribhuvandas Patel and Dr. Varghese Kurien.
4. The cooperative brought farmers, including women, together and gave them control over the production and sale of milk.
5. As more farmers began to see the benefits of the cooperative, it continued to grow.

AMUL’s Products

1. AMUL has a wide range of products made at many milk processing plants and factories all over India.
2. The products are then transported and sold in both small and large retail shops all over the country.
3. AMUL also exports the products to several countries around the world.
4. AMUL uses lorries, trucks, railway, air, and shipping services to transport its products.
5. It also has retail stores and supplies milk and milk products to other shops in towns, cities, villages, and different states across India.

IMPORTANT TERMS AND DEFINITIONS

1. Monetary value: Value of something that can be measured in terms of money. Monetary value of a chocolate may be ₹ 10, or so on.

2. Cooperative: A group of people who voluntarily come together to meet their economic and social needs in a formal way. They own the cooperative, and decisions are taken by the members collectively. There is no owner.

3. Middlemen: Persons who buy goods from producers and sell them to consumers. They charge a fee for this service.

4. Dairy: A place where milk is collected and stored. It is also associated with distribution of milk and the processing of milk products such as cheese,, butter, yogurt, cream etc.

5. Primary Sector: The group of activities that involves extrafction of raw materials directly from nature such as farming, fishing, forestry etc.

6. Secondary Sector: The group of activities that involves processing of raw materials derived from primary sector into products for sale or consumption. For example, grains produced in the field are used to make flour in the mill. The activity of making flour in mills comes under secondary sector.

7. Tertiary Sector: The group of activities that involves the provision of services which complement both primary and secondary sectors, such as transportation, banking, and management of business.

Real World Example

Enrich Your Understanding

Bus is made up mainly of iron and steel. Iron is extracted from earth which is a primary activity. Manufacturing of bus in factory is a secondary activity. The driver getting salary for transporting is a service, that is tertiary activity.

So, the tertiary sector is complementary to both primary and secondary sector economic activities.

8. Economic Sectors: Broad groups that include various activities that help the economic prosperity of a nation.

9. Interdependence: The mutual reliance between different sectors of the economy, where the success of one sector often depends on the performance of another.

10. Pasteurisation: A process by which milk is preserved through heating to a specific temperature to kill harmful bacteria. The shelf life of pasteurised milk is 5 to 10 days. It can be drunk without boiling.

11. Export: Goods and services that are produced in one country and sold to buyers or consumers in another country.

12. Retail: The sale of goods in small quantities for use by the end consumer rather than for resale. Stationary shop, shopkeepers in your locality are retail sellers.

13. Warehouses: Large buildings used for storing products before they are sold, used or rented out to shops. Vegetables grow seasonally, but pea is available throughout year due to ware-house. Things are kept preserved for longer time in the warehouses.

14. Economic Activities: These activities are involve money or are performed in exchange for money or money's worth for the parties involved. Example: You buy a school bag and in exchange give money to shopkeeper, you and the shopkeeper are parties. This is the.economic activity.

15. Milk Cooperative: An organization formed by farmers to collectively manage the production, processing, and sale of milk, thereby eliminating the need for middlemen and increasing their income.

16. Recycling: The process of converting waste materials into new materials and objects. The wastes e.g., things made of iron-steel turn to junk (kabaadee) with time. The iron and steel factory converts these into new products. This is called recycling.