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Chapter 14: Economic Activities Around Us — Online MCQ Test

SOCIAL · Grade 6 · CBSE(NCERT)
Practice Chapter 14: Economic Activities Around Us with a free chapter-wise online MCQ test. This chapter covers: Economy Farming Trade Services Occupation Production Consumption Markets Livelihood. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 14: Economic Activities Around Us — Important Questions & Answers

What is an economic activity?
  • A. Any activity that produces goods or services for earning livelihood
  • B. Only activities related to farming
  • C. Activities done only for entertainment
  • D. Activities that do not involve any money
Answer: A. Any activity that produces goods or services for earning livelihood
Economic activities are those that produce goods or services to earn a livelihood, including farming, trading, services, and manufacturing.
Which of the following is a primary economic activity?
  • A. Teaching
  • B. Farming
  • C. Engineering
  • D. Banking
Answer: B. Farming
Farming is a primary economic activity as it directly extracts natural resources from the earth, whereas teaching and banking are tertiary/service activities.
What do we call the ability and willingness to work?
  • A. Capital
  • B. Labour
  • C. Land
  • D. Resources
Answer: B. Labour
Labour refers to the human effort, ability, and willingness to work for economic activities.
Fill in the blank: A person who makes and sells goods is called a _________.
  • A. Consumer
  • B. Producer
  • C. Trader
  • D. Labourer
Answer: B. Producer
A producer is someone who manufactures or makes goods, while a trader buys and sells goods made by others.
Identify which occupation is a service activity.
  • A. Farmer
  • B. Fisherman
  • C. Doctor
  • D. Miner
Answer: C. Doctor
A doctor provides healthcare services (tertiary activity), while farmer, fisherman, and miner are involved in primary economic activities.
A baker produces bread and sells it in the market. In this scenario, which role does the baker play?
  • A. Only a consumer
  • B. Only a trader
  • C. Both producer and seller
  • D. Only a labourer
Answer: C. Both producer and seller
The baker is both a producer (makes bread) and a seller (sells it in the market), fulfilling both roles in the economic cycle.
Compare primary, secondary, and tertiary economic activities. Which statement is correct?
  • A. All three types require the same skills and equipment
  • B. Primary involves farming, secondary involves manufacturing, tertiary involves services
  • C. Primary activities are more important than secondary and tertiary
  • D. Tertiary activities do not exist in rural areas
Answer: B. Primary involves farming, secondary involves manufacturing, tertiary involves services
Primary activities extract natural resources (farming, fishing), secondary involves processing/manufacturing, and tertiary provides services (teaching, healthcare).
A village has limited resources. How can economic activities help improve the quality of life?
  • A. By preventing all kinds of trade
  • B. By creating employment and producing goods to meet community needs
  • C. By focusing only on farming
  • D. By eliminating the role of consumers
Answer: B. By creating employment and producing goods to meet community needs
Economic activities create jobs, produce goods and services needed by people, and generate income for families, improving overall living standards.
Which is NOT a characteristic of economic activities?
  • A. They involve producing or providing goods and services
  • B. They are done purely for entertainment without earning money
  • C. They contribute to livelihood
  • D. They involve exchange and trade
Answer: B. They are done purely for entertainment without earning money
Economic activities are specifically those done to earn livelihood or produce goods/services; activities done purely for entertainment without economic purpose are not economic activities.
Consider this complex scenario: A farmer sells raw cotton to a textile mill. The mill produces fabric and sells it to a clothing manufacturer. The manufacturer sells clothes through retail shops. Which statement BEST captures the economic principle demonstrated?
  • A. Only production is important, not distribution
  • B. Each stage adds value, employs people, and creates a supply chain connecting primary, secondary, and tertiary sectors
  • C. The farmer is the only important economic actor
  • D. Retail shops create the highest value in this chain
Answer: B. Each stage adds value, employs people, and creates a supply chain connecting primary, secondary, and tertiary sectors
This demonstrates value addition and sectoral interdependence: primary (farming) → secondary (manufacturing) → tertiary (retail), with each stage employing people and adding economic value.