Question

What is the difference between economic activities and non-economic activities? Explain with example.

Answer 1

Economic activity: 1. Activities which are related to the production and consumption of goods in return for money 2. The main motive is to earn money 3. It is added to the national income. 4. Example: A shopkeeper sells goods and gets money for it. An employee works in an office and gets paid.

Non-economic activity: 1. The activities which are done out of one’s own will and not to earn money. 2. The motive can be social or psychological. Out of love, satisfaction, happiness. 3. It is not added to the national income. 4. Example: Anyone who works at an NGO out of one’s own will without getting paid.