Overview
Everyone around us is busy doing something: flying planes, running shops, writing software, cooking, gardening, teaching, caring for elders. This chapter asks what kinds of activities people do and what each contributes to our everyday lives. Through the story of Anu and Kabir and their neighbours, you will learn to sort activities into two groups. Economic activities are done for money or money's worth, like a farmer selling crops, a lawyer earning a fee or a worker in a factory. Non-economic activities earn no income but are done out of love, care, gratitude or respect, like parents cooking for the family or volunteers teaching for free. You will see that the same activity, such as teaching or cooking, can be either kind, depending on whether it is paid. Kavya's visit to Kamlapur introduces four ways of being paid: salary, wage, fee and payment in kind. The example of Rajesh the carpenter, who turns ₹600 of wood into a ₹1,000 chair, explains value addition. Finally, you will discover why non-economic activities such as seva at langars, the Swachh Bharat Abhiyan and Van Mahotsav are so important for society, wellbeing and the quality of life.
हिंदी में पढ़ें
एक्सप्लोरिंग सोसाइटी: इंडिया एंड बियॉन्ड का यह अध्याय आर्थिक और अनार्थिक गतिविधियों में अंतर करता है, वेतन, मज़दूरी, फ़ीस, वस्तु के रूप में भुगतान और मूल्य संवर्धन समझाता है, और बताता है कि सेवा जैसे बिना वेतन के काम क्यों महत्त्वपूर्ण हैं।
Learning Objectives
- Identify the different activities people do in daily life
- Define economic activities and explain market, fee and money's worth
- Define non-economic activities and give examples
- Explain why the same activity can be economic or non-economic
- Distinguish salary, wage, fee and payment in kind
- Explain and calculate value addition
- Explain the importance of seva and community participation
- Appreciate the value of unpaid work in families and communities
Topics in this chapter
6 topics · tap a topic title to jump straight to it.
Everyone is busy: the many activities around us
1Think first
2The idea, in plain words
Think about the adults you saw yesterday. A vegetable seller calling out prices, a bus conductor, your teacher, perhaps a grandparent watering plants or a neighbour helping a child with homework. All of them were doing something useful. But were they all doing the same kind of work?
Anu and Kabir's neighbourhood. In the textbook, two friends, Anu and Kabir, are playing in a park when their neighbour Geeta Aunty, a pilot in the Indian Air Force, returns from work in uniform. This starts a conversation about what everyone they know does.
| Person | What they do |
| Geeta Aunty | pilot in the Indian Air Force |
| Kabir's grandfather | retired from the Border Security Force; gives free geography classes to neighbourhood children, tends the vegetable garden, runs errands for the home |
| Anu's parents (Appa and Maa) | run a shop selling uniforms and ready-made garments |
| Anu's mother (also) | helps a voluntary group that teaches stitching to women in the community |
| Rohan, Anu's elder brother | software engineer in a company making computer applications; on weekends teaches computer skills to young people in a college youth programme |
What do we notice? Each person does several different things. Some activities earn money: flying aircraft for the Air Force, running a shop, writing software. Others earn nothing: teaching neighbourhood children for free, gardening at home, teaching stitching as a volunteer. Yet all of them are valuable.
Two groups of activities. Activities like these are divided into two broad groups:
- Economic activities, which involve money or something of money's worth.
- Non-economic activities, which are done out of love, care, gratitude or respect, not for money.
The same person, both kinds. Notice that one person can do both kinds of activity. Rohan earns a salary at his company (economic) and volunteers at the weekend (non-economic). Anu's mother runs the shop (economic) and also teaches stitching voluntarily (non-economic).
Activity. Make a table of five people you know: their names, the activities they do, and a third column marked 'economic' or 'non-economic'. Fill in the third column after you read the next two topics. You may be surprised how many valuable activities earn no money at all.
- Activities = economic (involve money) + non-economic (done out of love, care or respect)
3Worked example
- Geeta Aunty flying for the Air Force.
- Kabir's grandfather teaching geography free.
- Rohan volunteering to teach computer skills at weekends.
4Your turn
Which of these is an activity Kabir's grandfather does without pay?
5Remember this
Economic activities: work that involves money
1Think first
2The idea, in plain words
When you buy a notebook, someone made the paper, someone printed it, someone transported it and the shopkeeper sold it to you. At every step money changed hands. These are economic activities.
Definition. Economic activities are those that involve money, or are done in exchange for money or money's worth, for the people involved. Examples:
- A businessperson selling school bags in the market.
- A farmer selling crops in the market.
- A lawyer arguing a case and earning a fee.
- A truck driver transporting goods from one place to another.
- Workers employed in a car factory.
Three useful words.
| Word | Meaning | Example |
| Market | a place where people exchange goods and services; in most markets these are exchanged for money | a weekly vegetable market, a shopping mall, an online store |
| Fee | a payment made to a person or organisation for professional advice or services | the fee paid to a doctor or a lawyer |
| Money's worth | the money value a person places on something, based on the benefit they get from it | a bag of rice given instead of cash |
Why 'money's worth'? Sometimes people are paid not in cash but in goods. A worker might receive grain or fruit for their labour. The grain has a money value, so the activity is still economic. Long ago, before coins were common, people often exchanged goods for goods; even today, some markets work this way, but most use money.
Test of an economic activity. Ask: Does this activity earn income, or is it done in exchange for money or goods of money value? If yes, it is economic.
Economic activities serve the nation too. Geeta Aunty, the Air Force pilot, serves the country, and she also receives a salary, so her work is an economic activity. Doing a job for pay does not make it less noble.
Your own observation. On your way to school, how many people did you see doing economic activities? A rickshaw puller, a newspaper vendor, a construction worker, a bank clerk, a tea seller. Think about how each of them is paid.
- Economic activity = activity done for money or money's worth
3Worked example
- A farmer selling wheat at the mandi.
- A lawyer charging a fee for a case.
- A truck driver paid to carry goods.
4Your turn
What is a 'fee'?
5Remember this
Non-economic activities: work done out of care
1Think first
2The idea, in plain words
Who cooked your dinner last night? Who helped you when you were stuck on a sum? Nobody sent a bill. Yet without this work, your life would be much harder.
Definition. Non-economic activities are those that do not generate income or wealth but are done out of feelings like gratitude, love, care and respect. Examples:
- Parents cooking food for the family.
- A mother helping her children with schoolwork.
- Young people taking care of their grandparents.
- Family members working together to repair or redecorate the house.
- Volunteers teaching skills to others for free.
Same activity, different kind. The key is not what is done but why and whether it is paid.
| Activity | Economic when | Non-economic when |
| Teaching | a school teacher is paid a salary | Kabir's grandfather teaches neighbourhood children free |
| Cooking | a cook works in a restaurant for wages | parents cook dinner for the family |
| Computer training | Rohan writes software for his company's salary | Rohan teaches computer skills to young people at weekends |
| Caring for the sick | a nurse is paid by a hospital | a grandchild looks after a sick grandparent |
Kabir's grandfather and your teacher. Both teach. But your school teacher is paid a salary, so that is an economic activity, while the grandfather teaches out of goodwill and receives no money, so his teaching is non-economic. Both are valuable to the children who learn.
Valuable, though unpaid. Non-economic activities create things money cannot easily buy: love, trust, health, good habits and strong families. If every meal cooked at home or every hour spent caring for elders had to be paid for, the cost would be enormous. These activities quietly hold families and communities together.
Think about it. Which non-economic activities matter most to you and your family? Perhaps a grandparent's stories, a sibling's help with homework, or a festival everyone prepares for together. Why are they valuable even though no money is earned?
- Non-economic activity = done out of love, care, gratitude or respect, not for income
3Worked example
- Parents cooking dinner for the family.
- A grandchild caring for a sick grandparent.
- Rohan teaching computer skills to young people as a volunteer.
4Your turn
Which of these is a non-economic activity?
5Remember this
How people are paid: salary, wage, fee and payment in kind
1Think first
2The idea, in plain words
Not everyone is paid in the same way. Some people receive money once a month, some every day, some per class or per case, and some partly in goods. The textbook's story of Kavya shows all of these.
Kavya's visit to Kamlapur. On her way to her aunt's village, Kamlapur, Kavya sees a new highway being built, with technicians operating excavators and bulldozers. The highway will cut travel time to the nearest town from five hours to two, so she can visit her aunt more often.
- Her uncle is a technician in a construction company who operates a bulldozer. He receives a monthly salary.
- Her aunt works at the village post office for a monthly salary. In the evening she also runs online classes to help students prepare for school exams and charges a weekly fee.
- Sahil, a farm labourer, uses a tractor to plough a farmer's land near a mango orchard. He earns a daily wage: part in cash and the rest in mangoes of equal value. The mangoes are payment in kind.
Four ways of being paid.
| Type of payment | Meaning | Example |
| Salary | a fixed, regular payment, usually monthly, from an employer to an employee | Kavya's uncle and aunt; Geeta Aunty |
| Wage | a payment by an employer to a worker for a specific period of time, such as a day | Sahil's daily wage |
| Fee | a payment for professional advice or services | the aunt's tuition classes; a doctor's fee |
| Payment in kind | a non-cash payment, in goods, received for work done | mangoes given to Sahil |
All are economic. Whether paid in cash or in goods, every activity above is economic, because it is done in exchange for money or money's worth. Payment in kind still has a money value.
Salary versus wage. A salary is usually fixed for a month and paid even if the month has a holiday. A wage is tied to a shorter period, often each day or each week of work, so a worker who does not work on a day may not be paid for it.
Your observation. Think of people you saw on your way to school. How is each paid? A shopkeeper earns from sales, a bus driver may get a salary, a daily construction worker gets a wage, and a doctor charges a fee.
- Ways of payment: salary (monthly, fixed) | wage (per day or period) | fee (per service) | payment in kind (goods)
3Worked example
- A post office clerk paid a monthly salary.
- A farm labourer paid a daily wage.
- A labourer given mangoes as payment in kind.
4Your turn
Kavya's aunt charges students a weekly amount for her online classes. What is this payment called?
5Remember this
Value addition: turning wood into a chair
1Think first
2The idea, in plain words
A plank of wood lying in a shop is worth a certain amount. After a skilled carpenter has cut, joined, smoothed and polished it into a chair, it is worth much more. Where did the extra value come from?
Value addition. Economic activities add value at each stage of changing something into another form. This is called value addition.
Rajesh the carpenter. Kavya's father, Rajesh, is a carpenter.
- He buys wood for one chair from a nearby market for ₹600.
- He uses his special tools and other materials, his skill, time and effort to build the chair.
- He sells the finished chair in the market for ₹1,000.
| Step | Value |
| Wood bought | ₹600 |
| Chair sold | ₹1,000 |
| Value added by Rajesh | ₹1,000 − ₹600 = ₹400 |
The extra ₹400 is the money value of Rajesh's skill, time and effort that went into making the chair. He has added value to the wood by turning it into furniture. Because every step, from buying the wood to selling the chair, involves payment, these are economic activities.
A closer look. In real life, part of that ₹400 also pays for nails, glue, polish and the wear on his tools. What remains is Rajesh's earning for his work. A more skilled carpenter, or a better design, can add more value to the same wood.
Value addition is everywhere.
- A baker turns flour, sugar and butter into bread and cakes worth more than the ingredients.
- A tailor turns cloth into a shirt.
- A mechanic repairing a tractor for a charge restores its value so it can work again.
- A doctor or a scientist creates value through services and knowledge.
By contrast, parents cooking dinner for their family or a person caring for a sick grandparent create great value for the family, but not money value, so they are non-economic.
Think about it. Can you name two more activities that create money value, and describe the value added in each?
- Value added = selling price of the product − cost of the material
3Worked example
- Wood worth ₹600 becomes a chair worth ₹1,000.
- Flour becomes bread in a bakery.
- Cloth becomes a shirt at a tailor's shop.
4Your turn
Rajesh buys wood for ₹600 and sells a chair for ₹1,000. What value has he added?
5Remember this
The importance of non-economic activities: seva and community
1Think first
2The idea, in plain words
At the Golden Temple in Amritsar, thousands of people are served a free meal every day, cooked and served by volunteers. Nobody pays and nobody is paid, yet everyone leaves fed. This is the power of non-economic work.
Value without money. Non-economic activities may not involve money, but the value they create is very important in our lives. They add to the welfare of society, to people's personal wellbeing and to the overall quality of life.
Seva: selfless service. We see seva in many places of worship, such as temples, gurudwaras, mosques and churches. For example, langars, or community kitchens, at gurudwaras serve free food to every visitor; temples distribute prasad to devotees. Such practices build a feeling of satisfaction and gratitude for what we have, and they are a way of contributing to society without expecting anything in return.
The strength of community participation.
- Swachh Bharat Abhiyan: this cleanliness mission depends on the joint efforts of all citizens. Each of us keeps our home and surroundings clean, and people also come together to clean streets, roads, parks and other public places. Together these efforts lead to a clean home, neighbourhood, society and nation.
- Van Mahotsav: the 'festival of forests' spreads awareness of the value of trees and the need to protect forests, bringing community members together for tree-planting drives.
- Festivals: during festivals, people gather to organise activities, decorate places together and share the food they cook.
| Example | Who does it | Value created |
| Langar at a gurudwara | volunteers | free food for all, a sense of equality and gratitude |
| Neighbourhood clean-up | residents | cleaner, healthier surroundings |
| Tree-planting drive | community members | greener areas, cleaner air, protected forests |
| Decorating for a festival | families and neighbours | joy, togetherness, shared culture |
Why it matters. A society where people only did paid work would be poorer in many ways: fewer people helping in emergencies, fewer shared celebrations, dirtier public places. Non-economic activity is the glue that makes a group of people into a community.
Your turn. Which community programmes have taken place in your school or locality, such as a cleanliness drive, a blood donation camp or a tree plantation? What did you notice about how people worked together?
- Non-economic activities → social welfare + personal wellbeing + better quality of life
3Worked example
- Free langar at the Golden Temple, Amritsar.
- Residents cleaning a park under the Swachh Bharat Abhiyan.
- Tree planting during Van Mahotsav.
4Your turn
What is a langar?
5Remember this
Key Concepts
- Economic activity
- An activity done for money or money's worth.
- Non-economic activity
- An activity done out of love, care, gratitude or respect that does not generate income.
- Money's worth
- The money value a person places on something, based on the benefit they get from it.
- Market
- A place where people exchange goods and services, usually for money.
- Fee
- A payment to a person or organisation for professional advice or services.
- Salary
- A fixed, regular payment, usually monthly, from an employer to an employee.
- Wage
- A payment by an employer to a worker for a specific period of time, such as a day.
- Payment in kind
- A non-cash payment, in goods, received for work done.
- Value addition
- The increase in money value when something is transformed into another form by skill, time and effort.
- Volunteer
- A person who works for others or the community without pay.
- Seva
- Selfless service done without expecting anything in return.
- Langar
- A community kitchen at a gurudwara that serves free food to every visitor.
- Swachh Bharat Abhiyan
- A national cleanliness mission based on the joint efforts of all citizens.
- Van Mahotsav
- The 'festival of forests', with tree-planting drives to raise awareness about trees and forests.
End-of-Chapter Trial Paper & Test Questions
Topic-wise questions to test your understanding of every concept in this chapter.
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How are economic activities different from non-economic activities? / आर्थिक गतिविधियाँ अनार्थिक गतिविधियों से कैसे भिन्न हैं?
Show answer
Economic activities are done for money or money's worth, like selling goods or working for a salary, while non-economic activities earn no income and are done out of love, care, gratitude or respect, like cooking for the family. / आर्थिक गतिविधियाँ धन या धन के मूल्य के लिए की जाती हैं, जैसे सामान बेचना या वेतन पर काम करना, जबकि अनार्थिक गतिविधियाँ कोई आय नहीं देतीं और प्रेम, देखभाल, कृतज्ञता या सम्मान से की जाती हैं, जैसे परिवार के लिए खाना बनाना।
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Give three examples of economic activities. / आर्थिक गतिविधियों के तीन उदाहरण दीजिए।
Show answer
A farmer selling crops in the market, a lawyer arguing a case for a fee and a truck driver transporting goods are all economic activities because they earn money. / बाज़ार में फ़सल बेचता किसान, फ़ीस लेकर मुकदमा लड़ता वकील और माल ढोता ट्रक चालक, ये सभी आर्थिक गतिविधियाँ हैं क्योंकि इनसे धन कमाया जाता है।
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Is Kabir's grandfather's free teaching economic or non-economic? How is it different from a school teacher's work? / कबीर के दादाजी का मुफ़्त पढ़ाना आर्थिक है या अनार्थिक? यह स्कूल शिक्षक के काम से कैसे अलग है?
Show answer
It is non-economic because he teaches out of goodwill and is not paid, while a school teacher receives a salary, so the teacher's work is an economic activity. / यह अनार्थिक है क्योंकि वे सद्भाव से पढ़ाते हैं और उन्हें कोई भुगतान नहीं मिलता, जबकि स्कूल शिक्षक को वेतन मिलता है, इसलिए शिक्षक का काम आर्थिक गतिविधि है।
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What is the difference between a salary and a wage? / वेतन और मज़दूरी में क्या अंतर है?
Show answer
A salary is a fixed, regular payment usually made monthly to an employee, while a wage is paid to a worker for a specific period such as a day, like Sahil's daily wage. / वेतन कर्मचारी को सामान्यतः हर महीने मिलने वाला निश्चित, नियमित भुगतान है, जबकि मज़दूरी किसी निश्चित अवधि जैसे एक दिन के काम के लिए मिलती है, जैसे साहिल की दैनिक मज़दूरी।
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What is payment in kind? Give an example. / वस्तु के रूप में भुगतान क्या है? उदाहरण दीजिए।
Show answer
Payment in kind is a non-cash payment in goods for work done; Sahil, the farm labourer, received part of his daily wage as mangoes of equal value. / वस्तु के रूप में भुगतान काम के बदले नकद के स्थान पर वस्तुओं में दिया गया भुगतान है; खेतिहर मज़दूर साहिल को उसकी दैनिक मज़दूरी का एक भाग बराबर मूल्य के आमों के रूप में मिला।
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Explain value addition with the example of Rajesh the carpenter. / बढ़ई राजेश के उदाहरण से मूल्य संवर्धन समझाइए।
Show answer
Rajesh buys wood for ₹600 and sells the chair he makes for ₹1,000, so he adds ₹400 of value through his skill, time and effort in turning wood into furniture. / राजेश ₹600 में लकड़ी खरीदकर उससे बनी कुर्सी ₹1,000 में बेचता है, इसलिए लकड़ी को फ़र्नीचर में बदलने के अपने कौशल, समय और मेहनत से वह ₹400 का मूल्य जोड़ता है।
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Name the different ways in which people are paid for economic activities. / आर्थिक गतिविधियों के लिए लोगों को किन-किन तरीकों से भुगतान मिलता है?
Show answer
People may be paid a salary, a wage, a fee for professional services, or payment in kind in the form of goods, as well as earning from sales in business. / लोगों को वेतन, मज़दूरी, पेशेवर सेवाओं के लिए फ़ीस या वस्तुओं के रूप में भुगतान मिल सकता है, और व्यापार में बिक्री से भी कमाई होती है।
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What is seva? Give an example. / सेवा क्या है? उदाहरण दीजिए।
Show answer
Seva is selfless service done without expecting anything in return, such as the langar at gurudwaras where volunteers serve free food to every visitor. / सेवा बिना किसी अपेक्षा के किया गया निःस्वार्थ कार्य है, जैसे गुरुद्वारों का लंगर जहाँ स्वयंसेवक हर आगंतुक को मुफ़्त भोजन परोसते हैं।
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How does community participation help in the Swachh Bharat Abhiyan? / स्वच्छ भारत अभियान में सामुदायिक भागीदारी कैसे सहायक है?
Show answer
When people keep their own homes clean and also come together to clean streets, parks and public places, their joint efforts lead to a clean neighbourhood, society and nation. / जब लोग अपने घर साफ़ रखते हैं और साथ मिलकर सड़कों, पार्कों व सार्वजनिक स्थानों की सफ़ाई करते हैं, तो उनके संयुक्त प्रयास से पड़ोस, समाज और देश स्वच्छ बनता है।
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'People engaged in community service are highly valued.' Comment. / 'सामुदायिक सेवा में लगे लोगों का बहुत मूल्य है।' टिप्पणी कीजिए।
Show answer
This is true because their unpaid work, such as langars, clean-ups and tree planting, improves social welfare, wellbeing and quality of life in ways money alone cannot. / यह सही है क्योंकि लंगर, सफ़ाई अभियान और पेड़ लगाने जैसा उनका बिना वेतन का काम सामाजिक कल्याण, खुशहाली और जीवन की गुणवत्ता को ऐसे बढ़ाता है जैसा केवल पैसे से संभव नहीं।
Related Laws & Principles
Explore allFoundational laws & principles behind this chapter. Each one opens a full page — what it says, why it matters, five practice questions and the mistakes to avoid.