People who are part of the workforce are called human resource. By contributing in productivity, the human resource plays a significant role in the economy of a country. Any other resource becomes useful only because of the input by the human resource.
Investment in human capital yields a return like investment in other resources. Investment in human capital is done through education, training and healthcare. A person with better education usually earns better than an uneducated person. Moreover, a healthy person is more productive than an unhealthy person.
Educated parents understand the value of education and hence invest in their child’s education to secure a better future for the child. Educated parents also take extra care of the health and nutrition of their child. This creates a virtuous cycle of creating a better human capital.
Uneducated parents are unable to invest on education and healthcare of their children. This creates a vicious cycle in which the coming generation is often forced to remain poor.
Economic activities can be categorized into three types, viz. primary, secondary and tertiary activities.
Primary Activities: Economic activities which are related to agriculture, poultry farming, fishing, horticulture, animal husbandry, mining, quarrying, etc. are called primary activities. Natural resources are just extracted (with little or no modification) in primary activities.
Secondary Activities: Manufacturing is called secondary activity. Natural resources are properly modified in secondary activity.
Tertiary Activities: Economic activities which support the primary and secondary activities are called tertiary activities. Banking, transport, finance and different types of services come under tertiary activities.
On the basis of production goal, economic activities are also divided into two types, viz. market activities and non-market activities.
Market Activities: When some product or service is produced to be sold in the market, it is called market activity.
Non-market Activities: When some product or service is produced for self consumption, it is called non-market activity. If a farmer produces just enough to meet his family needs, then his activity is a non-market activity. Similarly, the work of a housewife is a non-market activity; because she is working for the benefit of her family members.
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