Question 11 of 13intermediate💡 UnderstandLong Answer5 marks

What kind of economic activities do people engage in? Illustrate with examples.

Correct Answer

People engage in various types of economic activities that involve money or monetary compensation.

(1) Employment: Working for an organisation and receiving a regular salary, such as Geeta Aunty who is an Air Force pilot receiving salary, Kavya's uncle working as a technician, and her aunt working at the post office.

(2) Business and Trade: Running shops or selling goods, like Anu's parents who run a shop selling uniforms and garments, or a business person selling school bags in the market.

(3) Professional Services: Providing specialised services for fees, such as a lawyer arguing cases, a doctor providing medical services, or Kavya's aunt conducting online classes for a weekly fee.

(4) Labour: Working for daily wages, like Sahil the farm labourer who earns daily wage for tilling land.

(5) Manufacturing: Workers employed in factories, such as those in car manufacturing.

People may also receive payment in kind (goods instead of money) or earn profits from business activities.

Economic activities add value at each stage of production, as shown by Rajesh the carpenter who adds value by converting wood into furniture.

Exercise: Questions, activities and projects | Q: 2 | (Page Page 11)
For More Understanding

Explanation

The chapter provides numerous examples of economic activities through stories of various characters. Geeta Aunty (pilot), Anu's parents (shop owners), Rohan (software engineer), Kavya's uncle (technician), her aunt (post office employee and tutor), and Sahil (farm labourer) all engage in different types of economic activities. The chapter also explains value addition through the carpenter example, showing how economic activities create monetary value.

Solution Steps

  1. Employment: Working for an organisation and receiving a regular salary (e.g., Air Force pilot, technician, post office employee)

  2. Business and Trade: Running shops or selling goods (e.g., uniform shop, school bag seller)

  3. Professional Services: Providing specialised services for fees (e.g., lawyer, doctor, online tutor)

  4. Labour: Working for daily wages (e.g., farm labourer tilling land)

  5. Manufacturing: Workers employed in factories (e.g., car manufacturing)

  6. Payment can be received in money, goods (payment in kind), or as profits from business

  7. Economic activities add value at each stage of production (e.g., carpenter converting wood into furniture)

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