What is Economic activities? Features or Characteristics and objectives of Economic activities

Economic activities

Economic activities create Economic or financial gain by producing goods or services. Economic consideration is Paramount in these activities because human beings want to satisfy their biological needs like food, shelter etc. Economic activities are undertaken with an Economic motive. Non-economic motive and are undertaken on Account of love, affection, social, cultural or religious reasons

Characteristics of features of Economic activities

These are the following features of Economic activities:-

(1) Wealth producing activities : The Economic activities are undertaken to produce wealth. The wealth is produced by productive activities. The production may be for the consumption of family members or for the others. A farmer may grow vegetables for his family consumption and for selling in the market. The produce sold in the market will fetch income for the farmer.

(2)  Satisfying Human wants  :  The main Aim of Economic activities is to satisfy human needs. The needs to satisfy may be present or future. When a person undertake a job to earn money and buy necessities for his family then it will be Satisfying present needs after the retirement then it will be a plan for the future.

(3)  Money income  :  All Economic activities, these may be related to business, profession or services, helps in earning money. People undertake these activities to satisfy their family needs crop up. The Economic resources are employed to produce new products and this process helps in generating employment evenues and ultimately the money income. The social Development is linked to the economic activities undertaken there.

Objectives of Economic activities

Economic activities are undertaken to produce goods and services so that human wants are satisfied. The human efforts are directed for the welfare of society. All kinds of occupation and professions are undertaken to create wealth and satisfy human needs. Fishers give two objectives for economic activities, i,e., Proper allocation of resources and optimum use of resources. 

(1)  Proper allocation of resources  :  The Economic resources are limited and their requirements are many. It is essential to make a judicious allocation of resources so that maximum needs are satisfied. Every person assesses his needs and resources. He determines his priorities for applying his resources. Some needs are urgent while other may wait for sometime. An effort is made to get  maximum satisfaction out of the use of available resources. Proper allocation resources will ensure their best use.

(2)  Optimum use of resources  :  The other objectives of Economic activities is to optimum use of resources. The resources should be put to their maximum use. Various factors of production like land, labour capital, etc. should be use in producing goods in such a way  that no part is kept idle. For example, if a set of factors of production can produce a specified number of units then the production should not be less than that quantity otherwise the resources will not be fully used. The optimum is the level of greatest satisfaction and nothing can go beyond it. When the resources are used to their optimum level than one will drive maximum utility out of them.