R
Rishtaara
Social Science · Class 6

Economics: Livelihoods

Learn Economics: Livelihoods with notes, examples, and practice questions.

4 sections15–25 min read6 MCQs · 2 examples

Chapter Overview

Livelihoods are ways people earn living — farming, pastoralism, crafts, services, and wage labour. Rural and urban areas offer different economic opportunities and challenges.

Rural Livelihoods

  • Agriculture: small and marginal farmers, tenants
  • Animal husbandry, fishing, forestry
  • Seasonal migration for work
  • Self-employed artisans and shopkeepers

Urban Livelihoods

  • Factory workers, daily wage labourers
  • Street vendors, rickshaw pullers, domestic workers
  • Services: banks, IT, government jobs
  • Informal sector — no job security

Issues

  • Debt traps for farmers; crop failure risk
  • Low wages and poor conditions in informal sector
  • Education and skills improve livelihood options
  • MGNREGA guarantees rural wage employment

Solved Examples

Step-by-step solutions — read each step before checking the final answer.

Farmer risk

Why do small farmers face debt?

  1. 1High input costs — seeds, fertiliser
  2. 2Crop failure or low prices
  3. 3Borrow from moneylenders at high interest

Answer

Low income, crop risks, and costly loans

Informal sector

What is informal sector work?

  1. 1No written contract or social security
  2. 2e.g. street vending, daily labour

Answer

Unorganised work without formal protection

Key Points to Remember

  • Majority still depend on agriculture
  • Urban informal sector is large
  • Government schemes support rural employment
  • Skill training improves earnings

Exam Tips

  • Compare rural and urban livelihoods
  • What is MGNREGA?
  • Problems of daily wage workers

Practice MCQs — Economics: Livelihoods

Test your understanding with topic-wise multiple choice questions. Explanations appear after each answer.

Question 1 of 6Score: 0/0

MGNREGA provides: