What Are Economic Activities ? Types of Economic Activities

What are Economic Activities ? Meaning ↓

Economic activities are related to production, distribution, exchange and consumption of goods and services.

The primary aim of the economic activity is the production of goods and services with a view to make them available to consumer.

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"Human activities which are performed in exchange for money or money's worth are called economic activities."

In other words, economic activities are those efforts which are undertaken by man to earn Income, Money, Wealth for his life and to secure maximum satisfaction of wants with limited and scarce means.

E.g. A worker works in a factory and gets wages.

What are Non-Economic Activities ? Meaning ↓

"Human activities which are not performed for money or money's worth are called non-economic activities."

Here, there is no monetary consideration in exchange for such activities.

E.g. A person goes to temple, a boy helps his friend in studies, etc.

Types / Classification of Economic Activities ↓

1. Profession

Profession is an occupation carried on by professional people like Doctors, Lawyers, Engineers, etc. They provide specialised services in return for fees. To become a professional, a man requires specialized knowledge and professional qualification. For e.g. Doctor needs specialised knowledge in medicine, a lawyer needs a degree in law, etc.

2. Employment

Employment is a type of occupation under which one person provides his services, physical or mental to someone else in return for which he gets salary or wage. The person who employs is called employer and the person who is employed is called employee or worker.

3. Business

Business is an economic activity concerned with production and distribution of goods and services with the aim to earn profit. It includes all those activities which are directly or indirectly concerned with production, purchase and sale of goods and services. So the production, marketing, advertising, warehousing, insurance, banking, etc. are all business activities.