3. What do you mean by economic activities of man? What are such economic activities?
Answers
Economic activities are related to production, distribution, exchange and consumption of goods and services. ... In other words, economic activities are those efforts which are undertaken by man to earn Income, Money, Wealth for his life and to secure maximum satisfaction of wants with limited and scarce means.
Production, consumption and capital formation are called the basic economic
activities of an economy. Scarce resources are used in the production of goods and
services with the objective of satisfying our needs and wants. The process of
production of goods and services is carried by combining the factors like land, labour,
capital and entrepreneurship. Factors are paid rent, wages, interest and profits for
their productive services. The consumption activity consists of the use of goods and
services for the direct satisfaction of individual or collective human wants. A part of
current production is saved for future to add to existing capital stock like, plant,
machinery, building etc. every year in order to expand production potential in future.