Learning Objectives

iii. Watching movies in a theatre iv. Doing meditation . Types of Economic Activities Economic activities are undertaken to earn money.

Generally, people engage themselves in such activities on a regular basis and are Economic Activity Vs. Non-Economic Activity Economic Activities Non-Economic Activities . Definition : Economic activities are those activities which are undertaken to earn money or financial gain for livelihood. e.g., Fruit seller selling fruits Non-economic activities are those activities which are undertaken for the sake of pleasure, performed out of love, sympathy, sentiments etc.

e.g., Mother cooks for her family . Motive : Sole motive is to earn money or financial gain. e.g., Working as a lawyer. Undertaken for satisfaction of social, psychological or emotional needs.

e.g., Visit to a temple . Money Measurement : All economic activities can be valued in monetary terms. e.g., Doctor charges ₹ as consultation fee. Non-economic activities cannot be valued in monetary terms.

These are an expression of a thought, feeling or a gesture. e.g., An NGO distributes free clothes to poor children . Relationship : Economic activities are related to creation of wealth. e.g., Ram saved part of his salary to purchase a house of his own.

Non-economic activities do not create wealth. e.g., Money received as donation is spent on charity work. . Outcome : All economic activities result in production, procurement, distribution and consumption of goods and services.

e.g., Nokia produces cell phones and sells across India through its distributors. The end result of a non-economic activity is the mental, emotional or psychological satisfaction of the person doing the activity. e.g., Sona enjoys teaching orphans in an orphanage. .

Duration : Economic activities are repetitive. They are done on a regular basis to earn a living. e.g., Kulfi ice cream seller sells ice creams every evening. Non-economic activities may not be undertaken regularly.

Usually they are done during free time. e.g., Sankar visits orphanage in his free time. . Source of Initiation: Economic activities are initiated to satisfy human needs and wants.

Non-economic activities are initiated to satisfy emotional or sentimental pleasures. said to be engaged in their occupation. Occupations may be classified into three categories based on the following: A. Employment B.

Profession C. Business A. Employment It refers to the occupation in which people work for others and get remuneration in the form of wages or salaries. The one who is employed by others are called employees and the one who employs others is called employer.