What are Economic activities going on in the society ?

What are economic activities?

                Economic activities are activities undertaken with an objective of earning money or financial gain. They are related to the creation of wealth.

All economic activities result in production, procurement, distribution and consumption of goods and services.

Economic activities are repetitive. They are done on regular basis to earn a living.

Since every coin has two sides, the other side of economic activity are non economic activities.

Non economic activities are those activities which are done for the sake of pleasure, sympathy, out of love etc. For example, mother cooks food for her family.

They cannot be valued in monetary terms because they are an expression of feelings, gestures etc.

Types of economic activities

Mainly there are three kinds of economic activities:-

§  Business: - these are activities conducted on regular basis of sale of goods and services which are produced or procured on continues basis with the motive of earning profit.

§  Profession: - it involves rendering of services of specialised nature. It requires specialised skills, training, knowledge, and most importantly experience. Profession needs to follow guidelines and code of conduct laid down by professional body. For example, lawyer, doctor, charted accountant.

§  Employment: - this is an economic activity where people work for others for getting remuneration. Employees work as per contract of employment and provide their service to the employer in the term of employment.

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