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Practice & Let's Explore

January 15, 2025
2 min read

Let’s Explore: Activity Classification

Task: Classify the following activities found in the story of Anu and Kabir as Economic or Non-Economic.

CharacterActivityClassificationReason
Geeta AuntyFlying a plane (Pilot)EconomicShe receives a salary for her service to the Air Force.
RohanWorking as Software EngineerEconomicHe works for a company and gets a salary.
RohanTeaching computer skills (Volunteer)Non-EconomicHe volunteers for free; done for social service.
Shopkeeper (Appa)Selling uniformsEconomicHe sells goods in the market for profit.
MaaTeaching knitting (Volunteer)Non-EconomicShe contributes to a voluntary group without pay.
GrandfatherRetired BSF officerNon-Economic(Current status) Spending time at home/park is non-economic.

Identify Value Creation

Task: Put a check mark (✅) against activities that create monetary value (Economic) and identify the type of value creation.

  1. Baker

    • Status: ✅ Economic
    • Value Creation: Transforms flour/ingredients into bread/cakes (Manufacturing/Processing).
  2. Tailor

    • Status: ✅ Economic
    • Value Creation: Transforms fabric into clothes (Skill & Service).
  3. Farmers repairing their tractor

    • Status: ✅ Economic (Indirect)
    • Value Creation: Maintaining capital assets to ensure production continues.
  4. Doctor

    • Status: ✅ Economic
    • Value Creation: Provides health services for a fee.
  5. Parents cooking dinner for their family

    • Status: ❌ Non-Economic
    • Value Creation: Creates love and health, but no monetary exchange.
  6. Scientist

    • Status: ✅ Economic (if employed)
    • Value Creation: Research and innovation for salary.
  7. Person taking care of a sick grandparent

    • Status: ❌ Non-Economic
    • Value Creation: Care and emotional support.

Think About It: Scenarios

Scenario 1: Grandfather teaching neighborhood kids for free.

  • Question: Is this economic or non-economic? How is it different from school teachers?
  • Solution: This is a Non-Economic Activity. Even though the action (teaching) is the same as a school teacher, the motive is social service or personal satisfaction, and there is no monetary exchange (Salary/Fee). A school teacher does it as a profession for a livelihood.

Scenario 2: Festivals and Food.

  • Question: During festivals, people decorate and cook together. Why does this hold value?
  • Solution: These are Non-Economic Activities. They hold value because they build community strength, preserve culture, and provide emotional well-being. The joy shared during a festival cannot be bought with money.