These include all commercial and industrial activities which are connected with the production and or acquisition of wealth. These are also known as productive activities and are consisted of production and distribution of goods and services for earning a profit.
Types of Economic Activities:
Economic activities can be classified into three types.
All economics activities connected with production and exchange of goods and services to earn a profit or as a source of income are called the business. Although the main objective of a business is to earn profit sometimes it may suffer loss. So, the result of such activities cannot be predicted.
When a person provides his services to society on the basis of his specialized knowledge and experience in a particular field, it is known as profession (e.g.) doctors, professors, engineers, accountants etc. if these services are provided without any remuneration, it will be known as a non-economic activity.
When a person provides his services to another person or any institution on the basis of predetermined terms and conditions (fixed salary) is known as employment or service. Employment may be of three types:
- Government services
- Semi Government services
- Private service
These activities are done for personal satisfaction and not to earn profit or income. They don’t involve the creation of wealth; therefore, these are also known as non-productive activities.
Types of Non-Economic Activities
Non-Economic activities can be classified into four types.
1. Religious: Sayings prayers, taking fast in Ramadan, payment of Zakat are religious duties of Muslims etc.
2. Parental: Honor, obey and performance of function for parent and other relatives.
3. Patriotic: Struggle for freedom and solidarity of one’s own country. (e.g.) Kashmir movement for independence.
4. Social: Social welfare, to help the poor, free education and struggle for charitable purpose etc.