NCERT Solutions Exploring Society: India and Beyond Chapter 7 Introduction — LET’S EXPLORE

Book page 165 Updated on2026-09-05

Q1.
In small groups, study the economic activities around your locality. What are the different types of goods and services being made or provided?
Answer

Method first. Walk one fixed stretch — a market road, a lane, or the shops around your school — with your group, and record what you see rather than what you remember. For each establishment write down four things: what it is called, how many of that type you counted, what it produces or provides, and what it needs in order to do that. Those four columns are exactly the columns of the book’s table.

The key idea to test as you walk: separate goods — physical things you can hand over, like bread, vegetables, a repaired phone case — from services — work done for you that you cannot carry away, like a haircut, a bus ride, tuition, a phone repair.

Activity in the localityGoods producedServices provided
Bakery, sweet shop, flour millBread, biscuits, sweets, ground flourHome delivery, orders for functions
Tailor, cobbler, carpenterStitched clothes, furnitureAlterations, shoe repair, fittings at your house
Chemist, clinic, diagnostic labMedicines soldConsultation, tests, dressing a wound
Auto and e-rickshaw stand, courier, mobile recharge shopTransport, delivery, recharge and bill payment
Tuition centre, cyber café, bank branch, salonPrintouts, photocopiesTeaching, internet access, savings and loans, grooming
Sample answer: “In our 500-metre stretch we counted 41 establishments. Goods being made or sold included bread and biscuits, cooked meals, vegetables, stitched shirts and wooden stools. Services included haircuts, mobile repair, tuition, tailoring alterations, photocopying, auto rides and banking. We noticed that services outnumbered goods almost two to one, and that every service shop still needed some goods as inputs — the barber needs scissors and creams, the tuition centre needs a room, a board and electricity.”
Why this exercise comes first in the chapter: because the four factors are easier to believe when you have counted them. By the time you finish the walk you will have seen, without being told, that every single shop needed a place (land), somebody’s effort and skill (labour), some equipment and money (capital), and somebody who decided to start it (entrepreneurship).
Q2.
Here’s a small report that Latha, Asha, Mohan, and Kiran made. You can make your own report for shops of your choice.
Answer

This is the model your group report should copy. Here is the report exactly as it is printed on page 165, and then what it is worth noticing in it.

Types of shopsNumber in the localityGoods produced or services providedTypes of inputs required
Grocery shops13Food grains, milk, breadPackaged goods, perishables, storage space
Restaurants/food stalls8Cooked meals, snacks, beveragesRaw ingredients like vegetables and fruits, gas, utensils; cook/helper
Vegetable vendors15Fresh vegetables and fruitsFresh produce, baskets, weighing scale, cart or stall
Mobile repair shops4Mobile repair, mobile accessoriesTools, spare parts, knowledge and skills to handle mobile components and functions
Salons/parlours3Haircut, grooming, beauty servicesScissors, creams, beauty products, water, electricity
Total establishments counted
= 13 + 8 + 15 + 4 + 3
= 43 shops

Three things this report shows.

  • The commonest shop needs the least capital. Vegetable vendors are the largest group (15 of 43, a little over a third). Their inputs are a basket, a weighing scale and a cart or stall — the cheapest set on the list. Mobile repair shops, needing tools, spare parts and specialised knowledge, are only 4.
  • Every row already contains all four factors. Storage space and water are land; the cook/helper and the repairer’s skill are labour and human capital; the weighing scale, utensils, cart and scissors are capital; the shopkeeper who started each one is the entrepreneur.
  • One shop’s output is another shop’s input. The vegetable vendor’s fresh produce is listed as an input for the restaurants. This is the beginning of the idea of a supply chain, which the chapter defines on page 178.
Check it yourself: when you make your own report, count over one fixed stretch and one fixed day, and write the number even when it is 1 or 0. A count of 0 mobile repair shops in a village lane is a real finding, not a blank.
Q3.
Where do people get the money that they need for their business?
Answer

They start with their own money and the people closest to them, and borrow the rest. The chapter sets out three sources, in the order a business usually reaches for them.

  1. Personal savings, family and friends. Generally the first source of funds and support for individuals when they start a business — this is what Ratna did.
  2. A bank loan for the shortfall. The funds were insufficient for Ratna to start Pause Point, so she took a loan from the bank. She paid interest along with a part of her loan amount over a period of time. Interest is what a borrower pays the lender for using their money for a specific time.
  3. The stock market, for large companies. Big businesses need a lot of money to expand, so they raise it from the general public by selling shares of the business in the stock market — a special type of market where shares are bought and sold — and offer buyers a share of the profits, called a dividend.
A small example of a loan
Loan taken = ₹2,00,000   at  12% per year
Interest for one year = 12% of 2,00,000
= (12 ÷ 100) × 2,00,000
= ₹24,000

A small example of a dividend
Shares held by the public = 10,00,000
Dividend declared = ₹3 per share
Total paid out = 10,00,000 × 3 = ₹30,00,000 (₹30 lakh)
Why the order matters: each step costs more and demands more. Savings cost nothing but are limited. A loan is larger but must be repaid on time with interest whether or not the business does well. Selling shares brings in the most money but means giving strangers a permanent claim on your profits. That is why a roadside stall runs on savings and a petrochemical plant runs on the stock market — the size of the capital needed decides where you must go for it.
Q4.
Where did the hairdresser get trained?
Answer

Almost never in a classroom alone — through practice beside someone who already had the skill. The chapter’s own definition explains why: a skill is “the ability to do an activity or job well with practice and training”, and training is “the process of learning the required skills to do a particular job or activity”.

The usual routes, any of which a real hairdresser might name:

  • Apprenticeship in an existing salon — starting as a helper who washes hair and sweeps, watching the senior stylist for a year or two, then being allowed to cut.
  • Family transmission — learning from a parent or uncle who runs the shop. The chapter notes this pattern for India generally: knowledge was passed on from generation to generation, and also built on.
  • A short course at a beauty and wellness training institute, an ITI, or a skill-development programme, followed by supervised practice.
  • Free online courses of the kind SWAYAM offers, which the chapter mentions as technology opening access to skill development.
Why this question is in an economics chapter: because it separates labour from human capital. Two people can stand at the same chair for the same eight hours — that is the same labour. The one who trained can give a good haircut in twenty minutes and keeps customers coming back; that difference is human capital, the quality and efficiency of the labour. And notice where it came from: not from the salon’s capital, but from time spent learning.
Q5.
Who taught the food vendors to cook?
Answer

Usually the family kitchen first, then years of working in someone else’s. Food vendors mostly learn the way skills have long been passed on in India — by watching, helping and repeating, rather than from a written recipe.

  • At home, from a mother, father or grandparent — which is why a stall’s speciality is so often a family dish from a particular region.
  • As a helper in another food stall or dhaba, chopping and washing for a year before being trusted with the tawa. Notice that the book’s own table lists “cook/helper” as an input for restaurants — the helper is a cook being trained.
  • From a formal course — a catering or hotel-management institute, or a food-processing skill course — which is the route a chef in a hotel is more likely to have taken. The chapter says a chef develops new recipes and requires a special set of knowledge and skills.
Did you know? The chapter describes exactly this kind of transmission when it says knowledge in ancient India “was passed on from generation to generation, and also built on”. A vendor’s chutney recipe is a small living example of the same process — inherited, then changed to suit the customers who actually stop at that stall.
Q6.
What motivated the business owners to start their business?
Answer

Different owners, but the motives fall into four groups — and the chapter names most of them when it describes an entrepreneur.

MotiveWhat it sounds like when an owner says itThe chapter’s words for it
Solving a problem“There was nowhere on this highway to get a clean, hot meal.”An entrepreneur “identifies a problem and is resolute to solve it with an innovative solution”
Livelihood and income“I lost my job” or “the land at home could not feed all of us.”Enterprises “generate opportunities for people to engage in economic activities”
Independence and family tradition“I did not want to work under anyone” · “my father ran this shop.”Entrepreneurship means “starting your own enterprise”
Satisfaction and service“People come back and tell me the food tasted like home.”Entrepreneurs “derive a deep sense of satisfaction from seeing their dreams become a reality and serving the people”

Ratna is the chapter’s own case. She had a dream, chose a spot on the city outskirts where highway travellers would stop, and planned how to make it a success. Five years later Pause Point is known for tasty, high-quality food and employs seven people — so her single decision also created seven livelihoods.

Why profit alone is a poor explanation: if money were the only motive, nobody would start a business at all — a loan carries a fixed interest cost while the earnings of a new shop are uncertain. What makes someone accept that gamble is a belief that they can solve a problem better than it is being solved now. That belief is the real starting capital of a business.
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