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Economic Activities :

(i) Working in a field.

(ii) Working in a factory or office.

(iii) Shopkeeper.

(iv) Treatment to a patient by a doctor.

(v) Teachers teaching in the school.

(vi) Milkman working in a dairy farm

Non-economic Activities :

(i) Teacher teaching his own son.

(ii) Nurse serving her old mother.

(iii) Cooking of food by the housewife in her home.

(iv) Social service rendered by an NGO to flood victims.

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The government and the policy makers use the statistical data to formulate suitable policies of economic development. No analysis of a problem would be possible without the availability of data on various factors underlying an economic problem. For example if the government wants to make a policy to solve the problem of unemployment and poverty, reliable data are required for it. The number of persons who are waiting for a job, unemployed and semi employed persons, educated and illiterate persons, the number of people living below the poverty line, the related data may be required. If the government wants to remove poverty and disparity in income and wants to take appropriate action then proper reliable data are required. For example, if the government wants to help the people affected by Tsunami earthquakes, the bird flu dangers then data should be collected and put together about the disaster's cost systematically and correctly.

Modern economists now includes learning the basic skills involved in making useful studies for measuring poverty, how incomes are distributed, how earning opportunities are related to education, how environmental disasters affect our lives and so on.

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 Economics is an important subject to study the problem of an economy. Marshall says, "Economics is the study of man in the ordinary business of life". When we buy goods to satisfy our wants we are consumers, when we purchase the goods from the market they are sold by the seller. The goods and services are produced by the producers or manufacturers. Services are provided by the service holders. All these activities are closely related to human life. These activities are ordinary business of life. Economics studies the economic and productive activities which affect the human life. We have limited resources which have alternative uses. The same resources can be used in production and consumption both. We study economics to discuss the problems of production, distribution, consumption, welfare and standard of living of the people.

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A. True
B. True
C. True

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Human wants are unlimited and the resources to satisfy them are limited. All economic problems arise due to scarcity. The things that satisfy our wants are limited in availability. The resources which the producers have are limited in supply. These resources have alternative uses. We require food to satisfy our wants of nourishments. The farmers need resources like land, labour, capital, water, fertilizers etc. These resources are limited and have alternative uses. These resources can be used to produce food crops and non-food crops such as rubber, cotton, jute etc. They give rise to the problem of choice between different commodities.