COMMERCIAL STUDIES

PROJECT 2
NAME- Harshwardhan.M.
STD- XI
DIV- Commerce
ROLL NO – 35
SUBJECT – COMMERCE
TOPIC- ECONOMIC AND NON
ECONOMIC
 HUMAN ACTIVITIES
MEANING:-
Activities that are performed by humans beings are
called human activities. The activities which are directly
generating money are called economic activities and
another side those activities which are related to
personal satisfaction are called non-economic activities.

CLASSIFICATION OF HUMAN ACTIVITIES

 ECONOMIC ACTIVITIES

Occupations, jobs, or activities which are performed

by the people with the purpose of obtaining profit
are called economic activities. The purpose of these
activities is to create wealth or assets for the
business. Production and distribution are important
elements of economic activities.

 CHARACTERISITCS OF ECONOMIC ACTIVITIES

1. Wealth Producing Activities- He 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 his family consumption and for
selling in the market.

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. On the other hand 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.
EXAMPLES OF ECONOMIC ACTIVITIES

1. Production of goods by a manufacturer in a factory.

2. Distribution of goods by a wholesaler to retailers.

3. Selling of goods by a retailer to customers.

4. Transportation of goods and passengers by

railways/roadways/airlines/ships. 5. Storage of goods by a
warehouse keeper.

6. Acceptance of deposits and lending of money by a banker.

7. Insurance of risks by an insurance company. 8. Advertising

and publicity of goods by an advertising agency.

9. A clinic run by a doctor

11. Audit services provided by a chartered accountant in his

office.

. 10. Legal services provided by a lawyer in a court.

12. Working of a Government officer. 13. Services of a

teacher in a school/college.

14. Working of a farmer in his fields to sell his produce.

15. Working of a nurse in a hospital.

 NON ECONOMIC ACTIVITIES

Activities that are related to the psychological

satisfaction of the people are known as non-
economic activities. The result of these activities is
not to create wealth but it gives mental satisfaction.
Such kind of activities provides happiness and
peace to the people.

 EXAMPLES OF NON
ECONOMIC ACTIVITIES

 Free time activities: – They aim for at acquiring pleasure

during idle times. For example: painting, and singing, etc.
 Family commitment activities: – These activities are
dedicated and inspired by the institution of family. For
example, a teacher offering education to own child at
home, a doctor consulting a patient in his family, etc.
 Cultural and religious activities: – These activities
includes the ideas of happiness and mental satisfaction.
For example, e.g. worshiping God, visiting the temple, etc.
 Social welfare activities: – They are based on the
passion for helping or sympathising towards others in the
society. They include donations to the underprivileged,
participation in relief camps to help the people affected by
war, natural calamities, etc.
 TYPES OF ECONOMIC ACTIVITIES

 Business: – This economic activity provides

goods and services to satisfy human needs on
a daily basis with the aim of earning profits.
 Profession: – It can also be defined as an
occupation or a professional job that offers
specialised services in return for professional
charges.
 Employment: – This activity is based on a
contract between the company and the
employee. Here, the employee performs
duties for the company, and is paid (with
wages or a salary) in return.
1. Business-Business includes all those economic activities
which are concerned with production and exchange of goods
or services with the object of earning profits. Business is an
economic activity because it is undertaken for earning money
and producing wealth. All organisations which carry on
business, activities are called business enterprises or business
firms'. Similarly the persons who are engaged in business are
known as 'businessmen'. Business creates various types of
utilities by making goods and services more valuable and
useful to consumers. When raw materials are converted into
finished products, it creates form utility. Place utility is
created by transporting goods from the place of production
to the place of consumption. Goods are stored for future use
which results in the creation of time utility. A factory, a shop,
a transport company, a warehouse, an insurance company, a
bank are all examples of business activity. Firms providing
direct services, e.g., tailor, drycleaner, beauty parlour, etc.,
are also business enterprises.
2. Profession-The terms profession means an
occupation which involves pplication of
specialised knowledge and skills to earn a
living. The persons who re engaged in
profession are called professionals. They
render personal services of specialised nature
to their clients. The service is based on
professional education, aining, and
experience. Professionals receive fee for their
services. Chartered Accountancy, medicine,
law, tax consultancy are examples of
professions.
3. Employment.-(Employment mean an economic activity,
where people work for others in exchange for some
remuneration. The persons who work for others are called
'employees'. The persons or organisations which engage
others to work for them are called 'employers". The
remuneration by an employer to his employee is known as
wages or salary. The employee performs the work assigned
to him by his employer as per the terms and conditions of
employment. There is an oral or written agreement between
the employer and the employee. The employee acts under
the guidance and control of his employer. The employer may
be a Government (department) undertaking or a private firm.
Employment thus includes all types of jobs in government
offices and private enterprises. When a professionally
qualified person works as an employee he is also said to be in
employment. For example, a doctor may be employed in a
hospital. a chartered accountant may be working as an
accountant in a company and a lawyer.
BIBLOGRAPHY
=https://byjus.com/commerce/meani
ng-of-economic-and-non-economic-
activities/