Question

16.Youneedtostartaneconomicactivitytoearnalivingforyourfamily.Whichonewould youlikeandwhy?

Answer 1

Income Generation

All economic activities will generate some form of income. It is not compulsory that such income is in monetary terms, it can be in different kinds. So, if the activity is a form of livelihood for the person, and it generates him any form of income then it is an economic activity. For example, a labourer who toils the land and gets paid in crops, this is an economic activity.

So when you employ any one of the factors of production (land, capital, labour, entrepreneur) and in return earn an income in form of wages, salary, rent, royalty, profit, etc, we will classify such an activity as an economic activity. For example, rent earned on a property.