Put a √ against those activities/professions that you think create monetary value. Can you add two activities and examples of money related value creation to the empty rows at the end?
Activities that create monetary value (should be marked with √):
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Baker - sells bread and earns profit.
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Tailor - stitches clothes and charges money.
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Farmers repairing their tractor - saves repair costs, adds value to farming.
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Doctor - receives fees for medical services.
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Scientist - receives salary for research work.
Activities that do NOT create monetary value:
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Parents cooking dinner for family - done out of love and care.
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Person taking care of a sick grandparent - done out of love and duty.
Two additional activities with money-related value creation:
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Potter - sells earthen pots in the market for money.
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Electrician - receives payment for repairing electrical appliances.
Explanation
The chapter explains that economic activities add value at each stage of transforming something into another form, called value addition. The example of Rajesh the carpenter shows how he buys wood for ₹600, uses his skill and effort, and sells the chair for ₹1,000 - the ₹400 difference represents the monetary value of his skill, time and effort. Activities done for family without payment (like parents cooking) are non-economic activities.
Solution Steps
Economic activities add value at each stage of transformation, called value addition
Activities like baker, tailor, doctor, and scientist create monetary value through profit, fees, or salary
Farmers repairing their own tractor saves costs and adds value to farming operations
Non-economic activities like parents cooking or caring for sick grandparents are done out of love, not for payment
Additional examples of monetary value creation include potters selling pots and electricians charging for repairs