Meaning of Economic and Non-Economic Activities

Economics is a social science which 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 attempt to determine how these categories should gather and correlate attempts to attain maximum output. Economic analysis certainly 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?

What are Economic Activities?

Economic activity is an activity of providing, making, buying or selling commodities or services by people to satisfy day-to-day needs of life. Any activity that includes manufacturing, distributing or utilising products or services.

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

  • 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 – The activity is based on a contract between the company and the employee. Here, the employee performs duties for the company, and are paid (wages or salary) in return.

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Features of Economic activities

  • Earning motive
  • Utility creation
  • Satisfaction
  • Measurement

Additional link: Organisation Of Economic Activities

What are Non-Economic Activities?

Non-economic activity is an activity performed with the purpose of rendering services to others without any consideration to financial gain. Those activities which are initiated for personal content or to meet human sentiments are non-economic activities.

Some common examples of non-economic activities are.

  • Free -Time Activities – Its only aims at acquiring pleasure in idle time. For instance, painting and singing, etc.
  • Family-Commitment Activities – This activity is dedicated and inspired by family. For example, a teacher offering education to her/his own child at home and a doctor consulting his family, etc.
  • Cultural and Religious Activities – The activity includes happiness and mental satisfaction. Example, e.g. worshiping God and visiting the temple, etc. 
  • Social Welfare Activities – It is based on a passionate feeling of helping or sympathising towards others. Such as a donation to underprivileged, participation on relief camp to help people affected by war, natural calamities, etc.

Explore link: Important Questions for Class 11 Economics

 Features of Non- Economic Activities 

  • Service motive
  • Self-satisfaction 
  • Non-measured in money
  • Social obligation
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 those activities, which 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.


  1. the information was very useful me.

    1. The information was very useful to me

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