Question

Explain the market and non-market activities. Under which activity would you classify Government Services?

Answer 1

Market activities: These are those activities that are undertaken with the motive of production for the market.

Non-market activities: These are those activities that are undertaken with the objective of self-consumption.

Government services are market activities market activities. However, it should be noted that government provides these services with the welfare motive rather than for profit motive.