Economics activities

ECONOMIC ACTIVITIES
Presented By
Alpana Gupta and Richa Gupta

CONTENTS
1) Economic Activities
2) Non Economic Activities
3) Objectives
4) Characteristics
5) Parts of Economic Activities
6) Types/Classification Of Economic
Activities
7) Sectors Of Economic Activities.

ECONOMICS ACTIVITIES
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.

“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 under
taken 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.

NON ECONOMIC ACTIVITIES
Activities which do not have any
economic motive and are performed
with a feeling of love, sympathy,
humanity and patriotism are known as
non - economic activities.
e.g. playing, dancing ,giving donation, a
housewife cooking food for family , or a
boy helping an old man cross the road
etc.

OBJECTIVES
Economic activities are undertaken to
produce goods and services so that human
wants are satisfied . The human efforts
are directed for the welfare of society .
All kinds of occupations and professions
are undertaken to create wealth and
satisfy human needs . Fisher gives two
objectives for economic activities , i.e.,
proper allocation of resources and optimum
use of resources.

1. Proper Allocation of Resources :
The economic resources are limited and
their requirements are many . It is
essential to make a judicious allocation of
resources so that maximum needs
satisfied. Every person assesses his needs
resources . He determines his priorities
for applying his resources . Some needs
are urgent while others may wait for some
time . An effort is made to get maximum
satisfaction out of the use of available
resources.

2. Optimum Use of Resources
The other objective of economic
activities is the optimum use of
resources. The resources should be put
their maximum use. Various factors of
production like land, labour capital, etc.
should be used in producing goods in
such a way that no part is idle. The
optimum is the level of greatest
satisfaction and nothing can go beyond
it.

CHARACTERISTICS
1. Wealth Producing Activities: The
economic activities are undertaken to
produce wealth . The wealth is
produced by productive activities. The
production may be for the consumption
of family members or for the others .
A farmer may grow vegetables for
selling in the market will fetch income
for the farmer.

2. Satisfying Human Wants: The main aim
of economic activities is to satisfy
human needs. The needs to be satisfied
may be present or future . When a
person undertakes a job to earn money
and buy necessities for his family then
it will be satisfying present needs . And
when a person saves money out of his
current earnings for satisfying his
needs after the retirement then it will
be a plan for the future.

3. Money Income : All economic activities,
these may be related to business,
profession or service , help in earning
money income. People undertake these
activities to satisfy their family needs
with the help of money earned through
productive activities. A living is possible
with money income earned from
economic activities.

4.Developmental Activities : Economic
activities not only satisfy human wants but
also become a basis for economic
development of the society. When old
needs are satisfied then new needs crop
up. The economic resources are employed
to produce new products and this process
helps in generating employment avenues
and ultimately the money income . The
social development is linked to the
economic activities undertaken there.

PARTS OF ECONOMIC ACTIVITIES
1. Market activities : These types of
activities involve remuneration to any one
who performs i.e., activity performed for
pay or profit. These include production of
goods or services including government
service.
2. Non- market activities : These activities
are the production for self-consumption.
These can be consumption and processing
of primary product and own account
production of fixed assets.

TYPES / CLASSIFICATION OF
ECONOMIC ACTIVITIES

1. 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.

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

3. 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 is employed is
called employee or worker.

SECTORS OF ECONOMIC ACTIVITIES

Primary Sector
The primary sector of
economy is the sector of
economy making direct use
of natural resources. This
includes agriculture,
forestry, fishing and
mining. The primary sector
is usually most important
in less-developed countries
and typically less
important in industrial
country.

Secondary Sector
An economic activity
in which people use
raw material to
produce or
manufacture new
products of greater
value.
e.g. manufacturing
steel into car , or
textile into clothing.

Tertiary Sector
The tertiary sectors of the
economy is the service
industry . This sectors
provides services to the
general population and to
businesses. Activities
associated with the sectors
include retail, wholesales,
distribution,
transportation
,entertainment,
restaurants, healthcare,
law.

Quaternary Sector
The quaternary sector of
economy is the way to
describe the knowledge
based part of the
economy which typically
includes services such as
information technology ,
information generation
and sharing , media and
research and
development.

Quinary Sector
Quinary sector is the
branch of a country’ s
economy where high
level decisions are made
by top level executives
in the government,
industry, business,
education, media , non
profit organisation. It
is a top economic
sector.

Economics activities

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