By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: Economic activities are those human activities by which a person or an institution can earn their livelihood or of its members.
The different types of economic activities can be summarized below:
- Business: Businesses are those activities that are connected with or concerned with the production, purchase, and sale of both goods and services with the main objective of earning profits.
- Profession: Profession includes those activities which require special knowledge and skill to be applied by individuals in their occupation. For example, Doctors and Lawyers are Professionals that are members of their respective Professions of Medicine and law respectively. Professional activities are generally regulated by their respective professional bodies and the professionals are subject to guidelines and codes of conduct laid down by their bodies.
- Employment: Employment refers to those activities in which people work for others and get remunerated by them in return for their labor or services. There are two parties in Employment- The first is the employee who is employed by others and the Second one is the Employer who employs others to do his work. For example, Bank Clerks and Peon are employees of The Employer Bank.
