Answer each of the following questions in a paragraph:

Explain the different types of economic activities.

Economic activities are concerned with the production and exchange of goods and services. It can be classified into three different types –

• Business – these activities include mostly the production and exchange of goods.

• Profession – these activities include the supply of technical, specialized and personal services. The services provided by lawyers, doctors etc. fall under this category.

• Employment – any activity that is performed in lieu of wages or salaries from an employer falls under this category. Examples include, agricultural labourers and industrial workers.

Thus, all economic activities are ways to earn income in order to satisfy the various needs and wants in life.