You know that man always keeps himself engaged in some kind of activity to satisfy his needs and wants. All human activities may be broadly divided into two categories: (i)economic activities, and (ii) non-economic activities.
The work of a farmer, manufacturer, teacher, doctor, trader etc. are some examples of economic activities. They are primarily concerned with the production, distribution and consumption of goods and services. Economic activities are undertaken to earn one’s living and for the production of wealth.
Besides economic activities, people also undertake a number of activities for
mental satisfaction. They engage in charitable work, practice religion, undertake
recreational activities and also do many things out of love for others or out
of patriotic feelings. These activities are known as non-economic activities.
These activities are undertaken not for any material reward or gain but for
one’s happiness, pleasure or satisfaction which can not be measured in terms
of money.
Distinction between economic and non-economic activities
Following are the points of distinction between economic and non-economic activities.
Economic Non-economic
1. Economic activities are motivated
by economic gain while
Non-economic activities are
mental satisfaction or happiness.
2. Monetary gain is expected from
economic activities while t
here is no such satisfaction from non economic activities.
3. Economic activities lead to
creation of wealth while
Non-economic activities lead to personal satisfaction
However, a particular kind of activity which is non-economic in one case
may be economic in the other. Cooking by a housewife is non-economic but
cooking in a hotel is an economic activity.
Types of Economic Activities
When a person is regularly engaged in a particular economic activity, it is known as his or her occupation or vocation. Occupations may be classified into three categories —
(i) Business,
(ii) Profession and
(iii) Employment (Service).
Business:
Activities connected with the production or purchase and sale of goods or services with the object of earning profit are called business activities. Mining, manufacturing, trade, transportation, insurance, banking are business activities.Thus business may be defined as an economic activity involving regular production or purchase and distribution of goods and services with the object of earning profits.
Profession:
Any activity which requires special knowledge and skill to be applied by an individual to earn a living is known as profession. For example doctors, teachers, lawyers, engineers and accountants are engaged in profession.Profession involves intellectual activity. It is not a mechanical or routine operation.
The main characteristics of profession are
(i) Every profession requires special knowledge and training.
(ii) The primary objective is to render service.
(iii) The service cannot be substituted by another individual.
(iv) Every profession is regulated by a professional body. For example the profession of Chartered Accountants is regulated by the Institute of Chartered Accountants of India.
Employment
When a person works regularly for others and gets wages/salary in return, he
is said to be in employment. Thus factory workers, office assistants and
managers are said to be in employment. Those in employment are called
employees. Employment may be in government department or in private
organisation. It may be full-time or part-time, permanent or temporary. The
main features of employment are :
(i) Employees always work for others.
(ii) There are certain terms and conditions of work.
(iii) The people involved earn fixed income.
Vocation
Vocation means an occupation which involves the use of some basic skills
which can be developed by practice. Type-writing, tailoring, laundering,
carpentry etc. are some examples of vocation. Those who wish to get employed
after completing secondary education may acquire the basic skills required
for any vocation.