Economic Activities

Economic Activities

Learning Objectives

* Classify the economic activities.

* Understand the relationship between economic development and economic activities.

* Differentiate primary activities from secondary activities.

* Divide the world on the basis of economic activities.

Introduction

CASE STUDY

Have you heard about Waymo car? A car without brakes, accelerators or steering wheel – a driverless car is indeed a dream come true.

Google started testing self-driving technology with the Toyota Prius on freeways in California in 2009.

A new development was the unveiling of a new prototype vehicle in 2014, capable of being a fully self-driving car. These intelligent cars use sensors and software to detect objects like pedestrians, cyclists and can safely drive around them. According to Google, the car can process both map and sensor information to find out its exact location - precisely which street or lane it is driving in. The sensors are so powerful that it can detect all kinds of objects. What’s more interesting, the software can predict what these objects around the car will do next and take action accordingly.

In an instance, where the traffic signal turned green and the car was about to move forward, the car sensed an ambulance coming from the right side and it stopped, making way for the ambulance. Google calls its cars, ‘experienced drivers’. Each car’s speed is capped safely at 25 mph (40 km/hr). The cars halt for 1.5 seconds after the signal turns green at a junction as many accidents happen during this time.

But the cars can travel as fast as 161 km/hr. To ensure safety, the front side has about 2 feet of foam and the windshield is made of plastic instead of glass. This is the amazing product of secondary industries which we learn about as part of economic activities in this lesson

Economic activity refers to the activity of making, providing, purchasing and selling goods or services. Economic activities exist at all levels within a society. Human beings are engaged in various kinds of economic activities. In general all the economic activities are broadly categorised into Primary, Secondary and Tertiary activities. The Tertiary activities are further sub divided into Quaternary and Quinary activities.

Let us first understand the meaning and concept of the different categories of economic activities.

Types of Economic system:

1. Subsistence economy: Goods and services which are created for the use of the producers and their kinship groups.

2. Commercial economy: Goods and services which are produced mainly for sale. Market competition is the primary force determining the production and distributions.

3. Planned economy: Goods and services created are controlled by government agencies. Supply and price are controlled by the state. It was practiced earlier by the Communist controlled societies.