On your way from home to school today, can you recall the various economic activities that people are engaged in? In what ways do you think those people are paid?
Various economic activities observed on the way to school may include: shopkeepers selling goods (earning profit), bus/auto drivers transporting students (receiving fare or salary), vegetable vendors (earning from sales), and construction workers (receiving daily wages).
Doctors in clinics receive fees, teachers in schools receive salary, restaurant workers receive salary/wages, and street vendors earn from sales.
People are paid in different ways: salary (fixed monthly payment like teachers, post office workers), wages (daily payment like farm labourers), fees (payment for professional services like doctors, lawyers), and payment in kind (goods instead of money).
Some may also earn profit from selling goods.
Explanation
The chapter explains various modes of payment for economic activities: salary (fixed regular payment, generally monthly), fee (payment for professional advice or services), wage (daily payment for labour), and payment in kind (goods received instead of money). Examples from the chapter include Kavya's uncle receiving salary as a technician, her aunt receiving salary from post office and fees from online classes, and Sahil receiving daily wage partly in cash and partly in mangoes.
Solution Steps
Economic activities observed include shopkeeping, transportation, vending, construction work, medical services, teaching, and restaurant work
People are paid through salary (fixed monthly payment), wages (daily payment), fees (for professional services), or payment in kind (goods instead of money)
Some workers like shopkeepers and vendors earn profit from selling goods