Chapter : 2. People As Resources

Economic And Non-Economic - Activities

Economic Activities : All these activities that give income to the people are called economic activities. All the economic activities contribute to the flow of goods and services in an economy. e.g. -
1. A teacher teaching in a class.
2. A man or women working in a bank.
3. A farmer ploughing his field.
4. A worker working in a mine.
(i) Market Activities : Market activities involve remuneration to anyone who performs i.e., activity performed for money or profit. These include production of good sand services including government services.
(ii) Non-market Activities : Non-market activities are the production for self-consumption. These can be consumption and processing of primary product and own account production of fixed assets.
All the economic activities are classified into three categories..
1. Primary Activity : It includes those occupations which are closely related to man’s natural environment. e.g. Gathering, Hunting, Fishing, Lumbering, Grazing, Farming and Mining.
2. Secondary Activity : The occupations which produce finished goods by using the products of primary activities as raw material are included in secondary activity. Manufacturing of cloth from cotton, sugar from sugarcane and steel from iron ore are examples of secondary activity.
Tertiary Activity : Tertiary activity consists of all service occupation. For both primary and secondary activities, we require a substantial amount of support services. Transport, communication, trade, health, education and administration are example of tertiary activity.
Non-Economic Activity : These are those activities which do not give income in return. They also do not contribute to the flow of goods and services in the economy. e.g.
1. Teaching by father to his son at home.
2. Domestic work by the housewife.
3. Washing of father’s car by the son.
4. Scholarship to a student.
Reasons :
(A) These activities have negligible impact on the rest of the economy.
(B) These services are not produced for the market. So their valuation becomes difficult.

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