1.2 Economic Activities

Economic activities are those activities engaged with the object of generating income. Income is used for meeting the needs. When the income is more than the needs it becomes wealth. The basic character of economic activity is expectation of income. An activity without the aim of making money is non economic activity. Thus activities such as sports and games are non economic activities. It is done out of interest that give them satisfaction. There are some activities undertaken as part of moral duty or social obligation. All such activities are called non-economic activities.

Economic activities may be pursued by a single person on small scale or a group of persons on large scale. When a person is regularly engaged in an economic activity, it is said to be his occupation.