Meaning of Economic and Non-Economic Activities

Economics is a social science that deals with the production, distribution, and consumption of goods and services. It is the study of how individuals, businesses, governments, and countries make choices on allocating resources to motivate their needs and wants, and it attempts to determine how these categories should gather and correlate the attempts of attaining the maximum output. Economic analysis advances through analytical procedures, like mathematical logic, where the conjectures of different human activities are envisaged in a ‘means-ends’ structure.

Related link: What is Consumer Equilibrium?

Economic Activity

An economic activity is an activity of providing, making, buying, or selling of commodities or services by people to satisfy their day-to-day needs of life. Economic activities include any activity that deals with the manufacturing, distributing, or utilising of products or services.

Activities that involve money, or the exchange of products or services, are economic activities. The three types of economic activities are as follows:

  • Business: – This economic activity provides goods and services to satisfy human needs on a daily basis with the aim of earning profits.
  • Profession: – It can also be defined as an occupation or a professional job that offers specialised services in return for professional charges.
  • Employment: – This activity is based on a contract between the company and the employee. Here, the employee performs duties for the company, and is paid (with wages or a salary) in return.

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Features of Economic activities

  • Earning motive
  • Utility creation
  • Satisfaction
  • Measurement

Additional link: Organisation of Economic Activities

Non-Economic Activity

A non-economic activity is an activity performed with the purpose of rendering services to others without any considerations of financial gains. Activities that are initiated for personal content or for meeting human sentiments are non-economic activities.

Some common examples of non-economic activities are the following:

  • Free time activities: – They aim for at acquiring pleasure during idle times. For example: painting, and singing, etc.
  • Family commitment activities: – These activities are dedicated and inspired by the institution of family. For example, a teacher offering education to own child at home, a doctor consulting a patient in his family, etc.
  • Cultural and religious activities: – These activities includes the ideas of happiness and mental satisfaction. For example, e.g. worshiping God, visiting the temple, etc.
  • Social welfare activities: – They are based on the passion for helping or sympathising towards others in the society. They include donations to the underprivileged, participation in relief camps to help the people affected by war, natural calamities, etc.

Explore link: Important Questions for Class 11 Economics

 Features of Non- Economic Activities 

  • Service motive
  • Self-satisfaction 
  • Not measured in money
  • Social obligation
Important Topics in Economics:

Multiple choice questions:
Q.1-What is the root cause of all economic problems?
a. Population

b. Scarcity

c. Unemployment

d. Poverty

Answer key
Q.No Fill in the blanks
1 _________activities refer to the activities, that are not undertaken to earn money.
2 __________activities are performed out of love, sympathy, sentiments, patriotism etc.
Q. No Answer key
1 Non-economic
2 Non-economic

The above-mentioned concept is for CBSE Class 11 Statistics for Economics – Meaning of Economic and Non-Economic Activities. For solutions and study materials for Class 11 Statistics for Economics, visit BYJU’S or download the app for more information and the best learning experience.

Also, explore:

Frequently Asked Questions on Economic and Non Economic Activities


Which activity is called non economic activity?

Activity that does not provide any monetary benefit is called non-economic activity.


What are the 2 examples of non economic activities?

Non-economic activities are those activities that do not give income in return. Examples of such activities are : 1. Mother cooking food for children. 2. Father teaching children at home.


What are the two types of economic activities?

Two types of activities that can be classified as economic activities:

  1. Farmer ploughing on land
  2. Teacher teaching students in a school


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