Topic 3

Topic 3

1. SLIDE – 1 TOPIC –III : Economic Activities And Business SMITHA. R . S B.Ed Commerce N.S.S Training College Pandalam

2. Meaning of Economic Activities Economic activities are those activities which are undertaken by people to earn money . Production and distribution of goods required by others and rendering of services for earning income are economic activities . Economic activities are amed at making fnancial benefits . The work may be undertaken individually or in groups . An activity is characterized as an economic activity , if It is done for earning an income . It results in production and or distribution of goods or services . 3. It utilizes limited resources and 4. It is carried out after analyzing the cost and its benefits.

3. These are activities undertaken by people with out the intention of earning profits .They are done for getting personal pleasure or satisfaction . They are the result of love , respect , faith , social welfare ,etc. It is not done for any financial benefits . Religious and social services are examples of non-economic activities . Non Economic Activities

4. Distnction Between Economic and Non - Economic Actvities It s not easy to bring out a clear distinction between economic and non-economic activities . An activity will be economic or non- economic depending on the circumstances and context in which it is carried out. However the following points will distinguish the two .

5. Economic activities Carried out with the am of making money Results in the creation of income or wealth . Results in the production and distribution of goods . 4. Involves application of scarce resources of production . Non-Economic Activities Undertaken to satisfy one’s social or emotional needs . No expectation of income or wealth Undertaken for phychological satisfaction. Often guided by emotional and sentimental factors .

6. Types Of Economic Activities Economic activities can be broadly classified in to three types . They are :- 1.Profession Employment Business Human activities Economic Non Economic Business Profession Employment Religious Social Cultural Patriot ic