Economic Activities Around Us – Class 6, Chapter 1
1. Introduction
Economic activities are actions that involve the production, distribution, and
consumption of goods and services to satisfy human needs.
Key idea: Everyone participates in economic activities either directly or
indirectly.
2. Types of Economic Activities
Economic activities can be broadly classified into three categories:
A. Primary Activities
• Definition: Activities that involve extraction or use of natural resources
directly from nature.
• Examples: Agriculture, fishing, forestry, mining, animal husbandry.
• Features:
o Directly dependent on natural resources.
o Usually labor-intensive.
B. Secondary Activities
• Definition: Activities that involve manufacturing and processing of raw
materials into finished goods.
• Examples: Steel production, textile manufacturing, construction, food
processing.
• Features:
o Add value to raw materials.
o Use of machines and technology.
C. Tertiary Activities
• Definition: Activities that provide services instead of goods.
• Examples: Transportation, education, banking, healthcare, tourism.
• Features:
o No production of tangible goods.
o Supports primary and secondary sectors.
3. Classification Based on Ownership
1. Public Sector: Owned and managed by the government.
o Example: Railways, Post Office, Municipal services.
2. Private Sector: Owned and managed by individuals or private companies.
o Example: Shops, private hospitals, private schools.
3. Joint Sector: Owned by both government and private companies.
o Example: Some banks, industries.
4. Cooperative Sector: Owned and run by a group of people for mutual
benefit.
o Example: Cooperative societies, dairy farms.
4. Factors Affecting Economic Activities
1. Natural resources – availability of land, water, minerals.
2. Human resources – population size, skills, education.
3. Capital resources – machinery, technology, infrastructure.
4. Transport and communication – easy access to markets and resources.
5. Government policies – subsidies, taxation, regulations.
5. Importance of Economic Activities
• Satisfy human needs.
• Generate income and employment.
• Help in national development.
• Promote trade and commerce.
6. Economic Activities in Everyday Life
• Farming and fishing provide food.
• Shops and markets facilitate buying and selling.
• Banks and transport help in smooth distribution of goods.
