Question

What is the base for differentiating the economic and noneconomic activities?

Answer 1

The difference between economic and non-economic activities can be drawn clearly on the following grounds:

• An activity related to buying and selling of goods and services for economic gain is known as economic activity. An activity performed with empathy or moral values without any regard to monetary gain is known as non-economic activity.
  
• Economic activities are performed for creating livelihood such as doing business. On the other hand, non-economic activities are performed for social welfare or psychological reasons.
• Economic activities are measured in monetary terms, whereas non-economic activities are not measured in non-monetary terms.
• Economic activities give more importance to money. As against this, non-economic activities have an idealistic approach wherein more importance is given to human values instead of money.
• Economic activities are very important for the economy as they add value to the country’s gross domestic product (GDP) as well as improve Balance Of Payments through International trade. As opposed to non-economic activities, which have no influence over country’s national income but gives importance to the well-being of the human kind.