Economics An Introduction
Class 6 | Social Science — Economics | Unit 1
Class 6 Unit 1 Economics
Unit 1 - Economics: An Introduction
The laughter of children echoed throughout the children's park of that apartment. Some slided down joyfully down the slide and some went up and down in the see – saw, shouting cheerfully. Others were swinging so high and fast, in the swings as if they were about to reach the sky. Some children were waiting near the swings to play next.
Kavin did not join with any of these children. He sat alone in a corner, staring somewhere. His uncle Mohan noticed Kavin and came near him.
"Kavin, are you going to play with your friends?" asked his uncle as he sat next to Kavin.
"Uncle, everyone teases me, calling me a villager," said Kavin, with tears rolling down his eyes. "Even our Vimalan laughs along with them. I came here for the holidays with so much of excitement. Now, I regret my presence here. I want to go back to our village, uncle," sobbed Kavin.
"Is it so? Where is Vimalan?" asked his uncle and started to search for his son in the crowd.
"Vimalan," called him in loud voice. On hearing his father's voice, Vimalan enquired, "did you call me, dad?" and came near him.
"Did everyone tease Kavin?" asked Mohan. Vimalan didn't utter a word. He stood quietly.
"Even though I live in this big city, I also hail from the same village. My roots are still there" said his father worriedly. Then he added, "Go and bring your friends. I have to tell something to you." Saying this, he sat near Kavin.
When Vimalan brought his friends, his father made them all sit down together. Mohan asked the children, "let me come to the point directly. Do you know from where do we get all the food? The rice and pulses we eat?"
"We buy them from shops," said Anandhan.
"Tell me, where do the shopkeepers get these things from?"
"I guess they would buy them from another shop."
"I think they would buy them from those who grow crops, uncle," said Inba.
"Correct! We call those people who raise crops as farmers. Farming is the main occupation in villages."
The children looked at each other in surprise.
"The farmers grow various crops like pulses, grains, vegetables etc., and send them to the shops in cities. We buy and consume them".
"Uncle, I have a doubt," said Kavin.
"Tell me, Kavin"
"In villages, I have seen people selling all kinds of things in a place. Why do they call it 'Sandhai', instead of shops?"
"Yes, Kavin, in villages, once in a week or month, all things are sold in a particular place at a specific time to meet the needs of the people. That is called 'Sandhai'"
"Do you all know from where do they bring these things to Sandhai?"
"We don't know, uncle", said the children.
"I told you already that the things which are produced in villages are brought to sandhai."
"Fine, Kavin. Do you know what activities are carried out in a sandhai?"
"Buying and selling," said Kavin.
"Very good Kavin. Apart from going to the sandhai with your mother, you have also noticed what's happening around you."
HOTS
Imagine if money disappears one day?
Consumer Goods
The finished goods which are bought from the market to fulfill the daily needs of the consumers is called consumer goods. Example: rice, clothes, bicycles, etc.
Hearing this, Kavin smiled. All the children said in unison, "without knowing the importance of villages, we teasted kavin. Forgive us, uncle, we won't hurt anyone herafter. We wish to know more about this."
Activity 1
Plan for a model Sandhai. Ask the students to bring vegetables and fruits to the classroom. [One student – one vegetable/fruit]. Ask them to display like Sandhai and stick the prices of the vegetables. Other class students can buy the vegetables. Through this activity, the students can get an experience of the value of goods, buying, selling and a knowledge of profit, loss, demand and supply. Probably the Sandhai should be profitable. The students learn to fix the selling price through which they can earn profit.
"Sure, I will tell you," said Mohan, "Small traders and other people buy things from sandhai," explained Mohan. "Do you know in olden days we had a system of exchanging goods for other goods, called barter system? For example, exchange a bag of rice for enough clothes. A person who has rice in surplus and a person who has cloth in surplus, will exchange on the basis of their needs. But, here the problem is that the person who has clothes should have the willingness to buy rice. Only then, the exchange through barter system will take place. When they exchange commodities, they may lead to certain problems, when comparing the differences in the value of commodity. To solve this problem, people invented a tool called money."
"Really. Is it so" exclaimed the children?
"You know that early man, who hunted and gathered food, later learnt to cultivate crops. When they found rivers which provided them water, settled down permanently near the rivers. These permanent settlements were called villages. Agriculture remains to be the root of our economy even today. Man has no limits for his demand and desire. Based on this, man started to learn new occupations. Those who are involved in farming and grazing are called farmers or cultivators".
"Is agriculture the primary occupation?"
"Yes, there are certain other primary activities like farming. Agriculture and industries are helpful in the economic development of our country. Our country's economy is based on three economic activities."
cultivators
The amount from the income which is left for future needs after consumption is called savings.
அளவறிந்து வாழாதான் வாழ்க்கை யுளபோல
வில்லாகித் தோன்றாக் கெடும். -குறள் 479
விளக்கம்: தன் செல்வத்தின் அளவு அறிந்து அதற்கு ஏற்ப வாழாதவனுடைய வாழ்க்கை பல வளங்களும் இருப்பது போல தோன்றி உண்மையில் இல்லாதவனாய்ப் பின்பு அப்பொய்த்தோற்றமும் இல்லாமல் அழியும்.
Activity 2
Sing or Play the song ஒன்றிலிருந்து இருபது வரைக்கும் கொண்டாட்டம் , கொண்டாட்டம் . Interpret the lyric of the song and what is the logic behind the song.
Activity 3. Fill up the given table
| Serial number | Country | Currency name |
| 1 | Germany | |
| 2 | Brazil | |
| 3 | India | |
| 4 | Argentina | |
| 5 | China | |
PRIMARY ACTIVITIES
They are concerned with the production of raw materials for food stuff and industrial use. Primary activities include Agriculture, Cattle rearing, Fishing, Mining, Collection of fruits, nuts, honey, rubber, resin, medicinal herbs and lumbering.
"Is agriculture confined only to villages? What other works do the villagers do? What will a village look like uncle?" interrupted Inba.
"Agriculture is the primary occupation. There won't be any kind of facilities like our cities. At the same time, they get their basic needs fulfilled easily. There are small shops. Vegetables are grown in abundance, just like rice and pulses. Though the sugar that is added in our milk, coffee and tea is produced in sugar mills, the raw material sugarcane is cultivated in villages. From chilies to mustard, all those provisions used for food are grown in villages."
"Wow! My mother told me that these things are very expensive. Therefore, the villagers must be so wealthy!" said Adithya.
"No, not like that. They are just producers. Their products are bought and sold by some mediators. So, the farmers get very little money."
"What a pity! But the villages are the real shadows of cities", exclaimed Anandhan.
"Even Gandhiji has said that the villages are the backbone of our country."
"Yes, what a wonderful saying!" said Kavin excitedly.
At that time, the mobile phone rang. Mohan attended the phone. Vimalan's mother Ponni had called. "What are you chatting about with the children for so long? The food is ready. Bring them home", saying so, she cut the call.
"Children, come, let's go home. Food is ready" Mohan got up and the children followed him with joy.
Inba asked, "Uncle, you said how villages are important. Aren't cities important?"
"No Inba. Both cities and villages are important on their own."
"If it is so, tell us about the importance of cities", asked Inba again.
"That is good. I will tell you. More than 50 percentage of the world's populations live in cities. In our state Tamil Nadu, 47 percentage of the people are in cities."
"Wow," they exclaimed.
"Not only that. Tamil Nadu is well developed in secondary and tertiary activities as well. These are city centered activities."
"We feel very proud to hear this uncle. Tell us about those activities."
Uncle Mohan said, "Well, apart from this, employment opportunities are more in cities than villages. People involved in small scale industries and unorganized sector are mostly found in cities."
"We don't understand."
"In villages, there are only a few saloons and laundry shops. But, in cities the number of such small-scale workers are more. This results in additional income in cities."
"Really?"
"Yes, well paved roads, ports, airports and railway stations support trade. Many branches of banks help in the circulation of money and boost the country's economy. All these are termed as tertiary activities."
Vimalan exclaimed, "Even being in the city, I never knew about all these."
Inba said, "we really got to know more information, uncle"
"Good, will you compare cities and villages in the future?"
SECONDARY ACTIVITIES
The raw materials obtained from the primary activities are converted into finished products through machinery on a large scale. These activities are called secondary activities. Industries are classified on the basis of the availability of raw materials, capital and ownership. On the basis of raw materials, industries are classified as Agro based industries – Cotton textiles, Sugar mills and Food processing. Forest based industries – Paper mills, Furniture making, Building Materials. Mineral based industries – Cement, Iron, Aluminium Industries. Marine based industries – Sea food processing
Activity 4. Put tick mark in appropriate box
| Serial number | Occupation | Primary activity | Secondary activity | Tertiary activity |
| 1 | Farmer | | | |
| 2 | Teacher | | | |
| 3 | Tailor | | | |
| 4 | Engineer | | | |
| 5 | Bank Manager | | | |
TERTIARY ACTIVITIES
I already told you that industries produce goods and distribute them to the people. For this purpose, some services are required. These services are called tertiary activities or service sectors. The service sector serves the people to fulfill their daily needs like: Transport – roadways, railways, waterways, airways, Communication – Post, Telephone, Information Technology etc, Trade – Procurement of goods, selling, Banking – Money transactions, banking services
"Never, we won't say such a thing. If anyone talks like that, we will explain whatever we have learnt from you" replied the children.
"Come let's go and have our lunch." Said Mohan.
Children said that they will come after playing for some more time. Holding Kavin's hand, they all ran towards the park. Mohan, an economics teacher, felt proud of their unity and satisfied of clarifying something good to the children.
LEARNING OUTCOMES
Children understand the meaning of Sandhai. Get clear idea about the barter system. Gain knowledge of the various kinds of occupation.
GLOSSARY
Consumer the one who uses the products Commodity products Occupation work or Job Settlement living place of human being
EXERCISES
Exercise I. Fill in the blanks
1. The producers of food grains are
2. Collection of honey is a occupation
3. The conversion of raw materials into finished goods is called
4. According to Gandhiji the villages are of the nation.
5. The percentage of population in the cities of Tamil Nadu is
Exercise II. Match the following
| 1. Cattle rearing | |
| 2. Food processing | |
| 3. Iron & Steel Industry | |
| 4. Telephone | |
| 5. Cotton Industry | |
Options: Secondary occupation, Services, Primary occupation, Agro based industry, Tertiary occupation
Exercise III. Match and find the odd pair
| 1. Small scale Industry | |
| 2. Forest based Industries | |
| 3. Services | |
| 4. Banking | |
Options: Transaction of Money, Information Technology, Paper Industries, Cattle rearing
Exercise IV. Choose the correct answer
1. Agriculture is a occupation
2. Economic activities are divided on the basis of
3. Sugar Industries are activity
4. Agro based industry
5. Dairy farming is a
Exercise V. Answer the following questions
1. Sandhai – Define
2. What is called barter system?
3. What is trade?
4. What is Savings?
5. What was the necessity for the invention of money?
6. What was the reason for the development of settlements near water bodies?
7. What are called secondary occupation?
8. Name the city centred industries.
Exercise VI. Answer the following in detail
1. List out the important primary occupations of your district
2. Mention the manufacturing industries found in your district
3. How are the industries classified on the basis of raw materials?
4. Write down the occupations in the service sector
5. What do you know about the features of cities?
Exercise VII. Fill in the tabular column given below
| Serial number | Occupations in Villages | Occupations in cities | Occupations in Villages and cities |
| 1 | | | |
| 2 | | | |
| 3 | | | |
| 4 | | | |
| 5 | | | |
Activity
Write the lyrics of Bharathiyar's " சிந்துநதியின் மிசைநிலவினிலே ". Analyze the lyrics and write down the commodities which were exchanged in yester years with the help of the teacher.
Exercise VIII. Stick pictures
| Primary Activities | Secondary Activities | Tertiary Activities |
| | |
GLOSSARY
Eternal நிலையான Kinship இரத்த உறவு Contemporary சமகாலத்திய Metallurgy உலோகவியல் Preceptor ஆசான் Doctrine கோட்பாடு Virtuous நல்லொழுக்கம் Corpse சடலம் Monastery மடாலயம் Treatise ஆய்வுக்கட்டுரை Manufacture உற்பத்தி Deplete பயன்பாட்டில் குறைதல் Sustainable நிலைநிறுத்துதல் Tertiary மூன்றாம் நிலை Resource வளம் Biotic உயிருள்ள Abiotic உயிரற்ற Independence சுதந்திரம் Republic குடியரசு Heritage பாரம்பரியம் Aquatic நீர்வாழ்வன Astrophysicist வான்இயற்பியலாளர் Democracy மக்களாட்சி Drafting Committee வரைவுக்குழு Preamble முகப்புரை Secular மதச்சார்பின்மை Socialist சமத்துவம் Sovereign இறையாண்மை Consumer நுகர்வோர் Commodity விற்பனைப் பொருட்கள் Occupation தொழில்கள் Settlement குடியிருப்பு
Book-back Exercises — Questions & Answers
Answers generated strictly from the Samacheer Kalvi textbook content. Attempt each question first, then click "Show Answer" to check.
I. Fill in the blanks
1. The producers of food grains are ______
Answer: farmers
2. Collection of honey is a ______ occupation
Answer: primary
3. The conversion of raw materials into finished goods is called ______
Answer: secondary activities
4. According to Gandhiji the villages are ______ of the nation.
Answer: backbone
5. The percentage of population in the cities of Tamil Nadu is ______
Answer: 47
II. Match the following:
1. Match the following:
| Column A | Column B |
| 1. Cattle rearing | a) Secondary occupation |
| 2. Food processing | b) Services |
| 3. Iron & Steel Industry | c) Primary occupation |
| 4. Telephone | d) Agro based industry |
| 5. Cotton Industry | e) Tertiary occupation |
Answers: 1-c, 2-a, 3-a, 4-b, 5-d
III. Match and find the odd pair:
1. Match and find the odd pair:
| Column A | Column B |
| 1. Small scale Industry | a) Transaction of Money |
| 2. Forest based Industries | b) Information Technology |
| 3. Services | c) Paper Industries |
| 4. Banking | d) Cattle rearing |
Answers: 1-a (odd pair), 2-c, 3-b, 4-d (odd pair)
IV. Choose the correct answer:
1. Agriculture is a (Primary or Secondary) occupation
Answer: Primary
Explanation: According to the chapter, agriculture is the primary occupation and farming is the main occupation in villages.
2. Economic activities are divided on the basis of (ownership or use)
Answer: ownership
Explanation: The chapter states that industries are classified on the basis of availability of raw materials, capital and ownership.
3. Sugar Industries are (Primary or Secondary) activity
Answer: Secondary
Explanation: Sugar mills are listed under agro-based industries, which are secondary activities that convert raw materials into finished products.
4. Agro based industry (Cotton or Furniture)
Answer: Cotton
Explanation: The chapter mentions cotton textiles as an example of agro-based industries, while furniture is listed under forest-based industries.
5. Dairy farming is a (Public sector or co-operative sector)
Answer: co-operative sector
V. Answer the following questions:
1. Sandhai – Define
Answer: In villages, once in a week or month, all things are sold in a particular place at a specific time to meet the needs of the people. That is called 'Sandhai'.
2. What is called barter system?
Answer: In olden days we had a system of exchanging goods for other goods, called barter system. For example, exchange a bag of rice for enough clothes.
3. What is trade?
Answer: Trade involves procurement of goods and selling. It is a tertiary activity that serves people to fulfill their daily needs through buying and selling activities.
4. What is Savings?
Answer: The amount from the income which is left for future needs after consumption is called savings.
5. What was the necessity for the invention of money?
Answer: The barter system had problems when comparing the differences in the value of commodity and required willingness from both parties to exchange. To solve this problem, people invented money as a tool.
6. What was the reason for the development of settlements near water bodies?
Answer: Early man learnt to cultivate crops and when they found rivers which provided them water, they settled down permanently near the rivers. These permanent settlements were called villages.
7. What are called secondary occupation?
Answer: The raw materials obtained from the primary activities are converted into finished products through machinery on a large scale. These activities are called secondary activities.
8. Name the city centred industries.
Answer: Tamil Nadu is well developed in secondary and tertiary activities which are city centered activities. Small scale industries and unorganized sector are mostly found in cities.
VI. Answer the following in detail:
1. List out the important primary occupations of your district
Answer: Primary activities are concerned with the production of raw materials for food stuff and industrial use. They include agriculture, cattle rearing, fishing, mining, collection of fruits, nuts, honey, rubber, resin, medicinal herbs and lumbering. Agriculture remains to be the root of our economy even today.
2. Mention the manufacturing industries found in your district
Answer: Secondary activities convert raw materials into finished products through machinery on large scale. These include agro-based industries like cotton textiles and sugar mills, forest-based industries like paper mills and furniture making, mineral-based industries like cement and iron, and marine-based industries like sea food processing.
3. How are the industries classified on the basis of raw materials?
Answer: On the basis of raw materials, industries are classified as: Agro based industries like cotton textiles, sugar mills and food processing; Forest based industries like paper mills, furniture making and building materials; Mineral based industries like cement, iron and aluminium industries; Marine based industries like sea food processing.
4. Write down the occupations in the service sector
Answer: Tertiary activities or service sectors serve people to fulfill their daily needs like transport (roadways, railways, waterways, airways), communication (post, telephone, information technology), trade (procurement of goods, selling), and banking (money transactions, banking services).
5. What do you know about the features of cities?
Answer: More than 50 percentage of the world's population live in cities. In Tamil Nadu, 47 percentage of people are in cities. Employment opportunities are more in cities than villages. Cities have well paved roads, ports, airports and railway stations that support trade. Many branches of banks help in circulation of money and boost the country's economy.
📝 Summary
- Economics involves understanding where our daily necessities come from - farmers grow crops like rice, pulses, and vegetables in villages and send them to city shops for us to buy and consume.
- Villages have weekly or monthly markets called 'Sandhai' where all kinds of goods are sold in a particular place at a specific time to meet people's needs, serving as important centers for buying and selling activities.
- Consumer goods are finished products bought from the market to fulfill daily needs of consumers, such as rice, clothes, and bicycles.
- Farming is the main occupation in villages, and farmers play a crucial role in the economic system by producing various crops that supply food to both rural and urban areas.
- Economic activities like buying, selling, profit, loss, demand and supply can be understood through practical experiences like organizing model markets in classrooms.