Question

TABLE 2.1 EXAMPLES OF ECONOMIC ACTIVITIES
EXAMPLE
WHAT DOES THIS SHOW?
Imagine what would happen if farmers
refuse to sell sugarcane to a particular
Th e me of the secondary or
sugar mill. The mill will have to shut
indust b eing dependent on
down.
me may
Imagine what would happen to conon
cultivation if companies decide not to
buy from the Indian market and import
all cotton they need from other
countries. Indian cotton cultivation will
become less profitable and the farmers
may even go bankrupt, if they cannot
quickly switch to other crops Cotton
prices will fall
Farmers buy many goods such as
tractors, pumpsets, electricity.
pesticides and fertilisers, Imagine what
would happen if the price of fertilisers
or pumpsets go up. Cost of cultivation
of the farmers will rise and their profits
will be reduced
People working in industrial and service
sectors need food. Imagine what would
happen if there is a strike by
transporters and lorries refuse to take
vegetables, milk, etc. from rural areas.
Food will become scarce in urban areas
whereas farmers will be unable to sell
their products.
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Answer 1

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