What is the Classification of Human Activities: Economic & Non-Economic Explained Learn about economic and non-economic activities with explanations and examples help to understand
(toc)#Classification of Human Activities=(Table of Content)
Introduction
The term "human activity" describes the range of different behaviors and acts that a person performs individually or in groups socially, mentally or physically. These actions can be simple or complex.
Type of human activities
- Economic Activities
- Non- Economic Activities
Economic activities are those activities which include the production, distribution and consumption of goods and services for the purpose of generating income or profit. These include activities such as working a job, operating a business or a person involved in business.
Examples
1) a chef is cooking food in a
restaurant to earn money.
2) A teacher is teaching in a
school
In above example both individuals are performing activities to earn money.
Non-economic activities
Non-economic activities are performed not for financial gain but for personal, social, cultural, or ethical reasons. These activities aim to fulfill personal needs or welfare of society .
Example
1) A housewife cooking food
for her family.
2) A teacher teaches his
daughter at home
Type of economics activities
- Profession
- Business
- Employment
1. Mode of Establishment: -
Membership of a Professional Body: The Bar Council of India for lawyers and the Medical Council of India for doctors .
To become a professional, one must be a member of recognized professional institutions.
Certificate of Practice:- a person received certificate from professional institutions after complete their studies to legally provide their services
2.Qualification:-
- Specialized Education and Training: To qualify as a professional, one needs to complete education and practical training in the chosen field. For example, becoming a doctor requires a medical degree from the Medical Council of India.
4. Reward or Return:-
In the profession, professionals get fees in exchange for their services.
8. Code of Conduct:-
- Strict Professional Code:
Professionals must follow those rules made by professional bodies .This ensures the quality of work is maintained.
9. Examples:-
For lawyers : bar council of India,
For doctors :medical council of India
For chartered accountants :institute of chartered accountants of India
Business
The word business is obtained from the word ‘busy’. Thus, business means being busy.business refers to an act in which people regularly engage in activities related to buying, production and/or sale of goods and services with an object to earning profits.
Type of business
Industry
Commerce
Various business activities can be divided into two parts: industry and commerce.
Industry states the production or processing of goods and materials.
Commerce refers to all those activities which are related with the transfer of goods and services from the producers to the consumers.
Employment
1. Mode of Establishment:-
Employment is established through a formal contract or agreement, which shows the employee’s responsibilities, compensation, and working conditions. An employee was hired through direct recruitment through either promotion or employment agencies.
2. Nature of Work:-
The nature of work involves specific work and responsibilities assigned to the employee. it would be different from business to business or depending upon type of business
3. Qualification:-
Qualification refers to the education, skills, and experience required for a job.
4. Reward or Return:-
The reward for employment includes wages or salary and additional benefits like bonuses, health insurance, and retirement plans.
Note- wage and salary are different terms, wages refers to payment for physical work while salary refers to payment for mental work.
Example:
A teacher is hired by a school .
A doctor appointment in hospital.
In conclusion, human activities can be broadly classified into economic and non-economic activities. Economic activities are focused on generating income, while non-economic activities aim to meet personal, social, or ethical needs. Both play a vital role in enhancing individual lives and contributing to societal well-being.
Source:- ncert class 11 book business studies
