CHAPTER :-1
SHORT ANSWER TYPE QUESTION
1). States the different types of economic activities.
ans:- Different types of economic activities are of three types ;
1.Business:-It refers to those economic activities which are concerned with the
production of purchase and sale of goods or supply of services with the main objective of
earning profits.
2.Profession:-It refers to those activities which require special knowledge and skill to
be applied by individuals in their occupations.
3.Employment:-It refers to the occupation in which people work for other and get
remunerated in return.
2. What is Hundi?
Hundi is a financial instrument that was developed in Medieval India to carry out transactions
related to trade and credit. It is an unconditional order in writing made by a person directing
another to pay a certain sum of money to a person named in the order. It is capable of being
changed through transfer by valid negotiation.
3. List the major exports and imports in ancient India.
Items exported from India were spices, wheat, sugar, indigo, opium, cotton, parrot, sesame oil,
live animals, animal products such as hides, skin, horns, furs, tortoise shells, and other materials
like sapphires, pearls, quartz, crystal, lapis, granites, lazuli, turquoise and copper.
Items imported into India were horses, animal products, Chinese silk, flax and linen, wine, glass,
gold, silver, tin, lead, copper, rubies, coral, amber, etc.
4. What were the different types of Hundi in use by traders in ancient times?
Types of hundi are as follows:
1. Shah Jog Hundi: Payable to a respectable man
2. Jokhmi Hundi: It is a type of hundi which is applicable to goods transported by ship
3. Nam Jog Hundi: Payable to the named party or his order
4. Dhani Hundi: Payable to the owner of hundi
5. Jawabi Hundi: A type of hundi that resembles a money order.
6. Darshani Hundi: Payable on sight
7. Miadi Hundi or Muddati Hundi: Hundi that is payable after a specified period of time
5. What do you understand by maritime trade?
A kind of trade that involves the transportation of goods by sea using ships as the primary
medium is called maritime trade. There are specific regulations for this kind of trade as there is
risk involved in transporting goods by sea.
6. State the different types of economic activities.
, Various economic activities are as follows:
1. Profession: These are activities that require specialised skills and knowledge, and people
involved in these are known as professionals.
2. Employment: It is the type of economic activity where people get paid for the service they
provide, and they are known as employees.
3. Business: It is the economic activity that deals with the trading of goods and services with a
motive to earn profit.
7. Why is business considered an economic activity?
Business is said to be an economic activity as the sole purpose of starting a business is to earn a
livelihood and also make a profit from the activity. Hence, it is considered to be an economic
activity.
8. State the meaning of business.
Business is the occupation where people engage themselves in activities that are related to
purchase or production and sale of goods and services with the sole purpose of earning profit,
and therefore produce or sell goods and services that are in demand.
9. How would you classify business activities?
Business activity can be classified as follows:
1. Industry
2. Commerce
Industry: It involves activities that are concerned with the processing of raw materials to shape
them into the final product. The role of an industry is to provide value to the raw material so that it
can be consumed by the end users (consumers). Industries are classified as primary, secondary
and tertiary based on the functions they perform.
Commerce: It is mainly concerned with trading and related activities. It includes the exchange of
goods and services. Commerce deals with two types of activities: trade and auxiliaries to trade.
When goods are bought and sold, it is referred to as trade, and auxiliaries to trade involve
activities that include banking, transportation, advertising, and communication. Commerce
provides the necessary link that needs to exist between producers and consumers.
10. What are the various types of industries?
Industries can be broadly categorized into three types:
1. Primary Industries: These types of industries focus on getting raw materials; examples are
mining, fishing and farming.
2. Secondary Industries: Such industries mainly involve the manufacturing of goods from raw
materials and include the automobile,, steel and electronics industry.
3. Tertiary Industries: These industries provide services and support to primary and secondary
industries with activities related to trade.
11.Explain any two business activities which are auxiliaries to trade.
Activities that facilitate the exchange of goods and services are referred to as auxiliaries to trade.
Two examples are given below:
1. Banking and Finance: Funds are necessary for acquiring assets, purchasing raw materials and
meeting other expenses. These funds can be obtained from a bank. Therefore, banking helps
business activities to meet the required funds.
SHORT ANSWER TYPE QUESTION
1). States the different types of economic activities.
ans:- Different types of economic activities are of three types ;
1.Business:-It refers to those economic activities which are concerned with the
production of purchase and sale of goods or supply of services with the main objective of
earning profits.
2.Profession:-It refers to those activities which require special knowledge and skill to
be applied by individuals in their occupations.
3.Employment:-It refers to the occupation in which people work for other and get
remunerated in return.
2. What is Hundi?
Hundi is a financial instrument that was developed in Medieval India to carry out transactions
related to trade and credit. It is an unconditional order in writing made by a person directing
another to pay a certain sum of money to a person named in the order. It is capable of being
changed through transfer by valid negotiation.
3. List the major exports and imports in ancient India.
Items exported from India were spices, wheat, sugar, indigo, opium, cotton, parrot, sesame oil,
live animals, animal products such as hides, skin, horns, furs, tortoise shells, and other materials
like sapphires, pearls, quartz, crystal, lapis, granites, lazuli, turquoise and copper.
Items imported into India were horses, animal products, Chinese silk, flax and linen, wine, glass,
gold, silver, tin, lead, copper, rubies, coral, amber, etc.
4. What were the different types of Hundi in use by traders in ancient times?
Types of hundi are as follows:
1. Shah Jog Hundi: Payable to a respectable man
2. Jokhmi Hundi: It is a type of hundi which is applicable to goods transported by ship
3. Nam Jog Hundi: Payable to the named party or his order
4. Dhani Hundi: Payable to the owner of hundi
5. Jawabi Hundi: A type of hundi that resembles a money order.
6. Darshani Hundi: Payable on sight
7. Miadi Hundi or Muddati Hundi: Hundi that is payable after a specified period of time
5. What do you understand by maritime trade?
A kind of trade that involves the transportation of goods by sea using ships as the primary
medium is called maritime trade. There are specific regulations for this kind of trade as there is
risk involved in transporting goods by sea.
6. State the different types of economic activities.
, Various economic activities are as follows:
1. Profession: These are activities that require specialised skills and knowledge, and people
involved in these are known as professionals.
2. Employment: It is the type of economic activity where people get paid for the service they
provide, and they are known as employees.
3. Business: It is the economic activity that deals with the trading of goods and services with a
motive to earn profit.
7. Why is business considered an economic activity?
Business is said to be an economic activity as the sole purpose of starting a business is to earn a
livelihood and also make a profit from the activity. Hence, it is considered to be an economic
activity.
8. State the meaning of business.
Business is the occupation where people engage themselves in activities that are related to
purchase or production and sale of goods and services with the sole purpose of earning profit,
and therefore produce or sell goods and services that are in demand.
9. How would you classify business activities?
Business activity can be classified as follows:
1. Industry
2. Commerce
Industry: It involves activities that are concerned with the processing of raw materials to shape
them into the final product. The role of an industry is to provide value to the raw material so that it
can be consumed by the end users (consumers). Industries are classified as primary, secondary
and tertiary based on the functions they perform.
Commerce: It is mainly concerned with trading and related activities. It includes the exchange of
goods and services. Commerce deals with two types of activities: trade and auxiliaries to trade.
When goods are bought and sold, it is referred to as trade, and auxiliaries to trade involve
activities that include banking, transportation, advertising, and communication. Commerce
provides the necessary link that needs to exist between producers and consumers.
10. What are the various types of industries?
Industries can be broadly categorized into three types:
1. Primary Industries: These types of industries focus on getting raw materials; examples are
mining, fishing and farming.
2. Secondary Industries: Such industries mainly involve the manufacturing of goods from raw
materials and include the automobile,, steel and electronics industry.
3. Tertiary Industries: These industries provide services and support to primary and secondary
industries with activities related to trade.
11.Explain any two business activities which are auxiliaries to trade.
Activities that facilitate the exchange of goods and services are referred to as auxiliaries to trade.
Two examples are given below:
1. Banking and Finance: Funds are necessary for acquiring assets, purchasing raw materials and
meeting other expenses. These funds can be obtained from a bank. Therefore, banking helps
business activities to meet the required funds.
