How would you distinguish between economic activity and non-economic activity? Draw a list of economic and non-economic activities of your family members. Give logical reasoning in support of your answer.
Basis
Economic Activity
Non-Economic Activity
1. Definition
Any activity which is carried out using scarce resources is called economic activity.
Any activity which is carried out without using scarce resources is called non-economic activity.
2. Market Value
These activities have market value.
These activities do not have market value.
3. Money Measurement
These activities can be measured in terms of money.
These activities cannot be measured in terms of money.
Economic and non-economic activities are listed below.
Economic activities:
1. Services of a maid
2. Vegetables purchased by mother
3. Dad working in the office
4. Mother making snacks for sale
All the above activities involve the use of scarce resources for carrying out production, consumption, saving, investment, etc and are undertaken with the aim of monetary gain. Thus, these activities are called economic activities.
Non-economic activities:
1. Mother teaching her son
2. Contribution to charity
3. Watching movie in the house
4. Food prepared by mother for self consumption
The above mentioned activities are concerned with psychological needs and cannot be measured in terms of money. Hence, these activities are regarded as non economic activities.
|
Basis |
Economic Activity |
Non-Economic Activity |
|
1. Definition |
Any activity which is carried out using scarce resources is called economic activity. |
Any activity which is carried out without using scarce resources is called non-economic activity. |
|
2. Market Value |
These activities have market value. |
These activities do not have market value. |
|
3. Money Measurement |
These activities can be measured in terms of money. |
These activities cannot be measured in terms of money. |
Economic and non-economic activities are listed below.
Economic activities:
1. Services of a maid
2. Vegetables purchased by mother
3. Dad working in the office
4. Mother making snacks for sale
All the above activities involve the use of scarce resources for carrying out production, consumption, saving, investment, etc and are undertaken with the aim of monetary gain. Thus, these activities are called economic activities.
Non-economic activities:
1. Mother teaching her son
2. Contribution to charity
3. Watching movie in the house
4. Food prepared by mother for self consumption
The above mentioned activities are concerned with psychological needs and cannot be measured in terms of money. Hence, these activities are regarded as non economic activities.
