This document discusses economic and non-economic activities. It defines economic activities as those undertaken to earn money through the production and distribution of goods and services. Non-economic activities are done without intention of profit, for personal pleasure or satisfaction like religious and social services. While distinguishing the two can be difficult, economic activities generally aim to make money, create income/wealth, and use scarce resources, while non-economic activities satisfy social/emotional needs without expectation of income. The document also lists the main types of economic activities as profession, employment, and business.

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
1. It is done for earning an income .
2. 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. Non Economic Activities
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 .

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
1. Carried out with the am of
making money
2. Results in the creation of income
or wealth .
3. 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
2. Employment
3. Business
Human activities
Economic Non Economic
Business Profession Employment Religious Social Cultural Patriotic