Understanding Economic Activities

Study Notes

Economic activities refer to the various ways in which people earn their livelihood.
There are three main types of economic activities:
1. Business: Production and distribution of goods and services to earn profit.
2. Employment: Working for others in exchange for a salary or wages.
3. Self-employment: Engaging in economic activities on one's own, such as farming, craftsmanship, or small-scale entrepreneurship.

There are three main types of economic systems:
1. Traditional Economy: Based on customs, traditions, and beliefs. Decision-making is based on traditional practices.
2. Market Economy: Resources are allocated based on market forces of demand and supply. Individuals and businesses make decisions to maximize profit.
3. Command Economy: The government plays a significant role in allocating resources and making decisions.

The four factors of production are:
1. Land: Natural resources such as soil, water, and minerals.
2. Labour: Human effort and skills used to produce goods and services.
3. Capital: Man-made goods such as machinery, tools, and buildings used to produce goods and services.
4. Entrepreneurship: The ability to organize and manage production.

Consumers have the right to:
1. Safety: Protection from hazardous products and services.
2. Information: Accurate and reliable information about products and services.
3. Choice: Availability of a variety of products and services at competitive prices.
4. Hearing: Redressal of grievances and complaints.

Consumer awareness is important because it:
1. Protects consumers from exploitation: By being informed, consumers can avoid being cheated or misled.
2. Promotes fair competition: By making informed choices, consumers encourage businesses to provide better quality products and services.
3. Encourages quality improvement: Businesses are motivated to improve the quality of their products and services to meet consumer demands.

Economic activities are the ways people earn their livelihood, including business, employment, and self-employment.
Business involves producing and distributing goods and services to earn profit.
Employment involves working for others in exchange for a salary or wages.
Self-employment involves engaging in economic activities on one's own, such as farming, craftsmanship, or small-scale entrepreneurship.

There are three main types of economic systems: traditional, market, and command economies.
Traditional economies are based on customs, traditions, and beliefs, with decision-making based on traditional practices.
Market economies allocate resources based on market forces of demand and supply, with individuals and businesses making decisions to maximize profit.
Command economies have the government playing a significant role in allocating resources and making decisions.

The four factors of production are land, labour, capital, and entrepreneurship.
Land refers to natural resources such as soil, water, and minerals.
Labour refers to human effort and skills used to produce goods and services.
Capital refers to man-made goods such as machinery, tools, and buildings used to produce goods and services.
Entrepreneurship refers to the ability to organize and manage production.

Consumers have the right to safety, which means protection from hazardous products and services.
Consumers have the right to information, which means having accurate and reliable information about products and services.
Consumers have the right to choice, which means having a variety of products and services available at competitive prices.
Consumers have the right to hearing, which means having their grievances and complaints addressed.

Consumer awareness is important because it protects consumers from exploitation by being informed.
Consumer awareness promotes fair competition by making informed choices, encouraging businesses to provide better quality products and services.
Consumer awareness encourages quality improvement, as businesses are motivated to improve the quality of their products and services to meet consumer demands.